Southern District of Florida
Press releases recorded for this federal judicial district.
Port St. Lucie Resident Sentenced to More Than 12 Years in Prison for International Firearms TraffickingRead the Press Release
A Port St. Lucie resident was sentenced today to more than 12 years in prison for unlawfully exporting firearms, firearm accessories, and ammunition from South Florida to Rio de Janeiro, Brazil.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI); Diane J. Sabatino, Director, Field Operation, U.S. Customs and Border Protection (CBP), Miami Field Office; Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division; and Ken J. Mascara, Sheriff, St. Lucie County Sherriff’s Office, made the announcement.
Frederik Barbieri, 47, of Port St. Lucie, Florida, previously pled guilty to one count of conspiracy to commit offenses against the United States, in violation of Title 18, United States Code, Section 371, and one count of unlicensed exportation of defense articles, in violation of Title 22, United States Code, Section 2778. Today, U.S. District Court Judge Federico A Moreno sentenced Barbieri to 154 months in prison, to be followed by supervised release In addition, Judge Moreno entered a forfeiture money judgment against Barbieri in the amount of $9.6 million, which represents proceeds from the offenses, based on 122 shipments of water heaters containing approximately 915 firearms, and 15 shipments of air conditioning units containing approximately 45 firearms, a total of 960 firearms, with a profit of approximately $10,000.00 per firearm. Furthermore, the firearms and ammunition are subject to forfeiture.
According to stipulated facts filed in court, from May of 2013 through February of 2018, Barbieri conspired with others to: possess firearms with obliterated serial numbers; deliver packages containing those firearms to contract carriers for international shipment without providing notice that the packages contained firearms; and smuggle firearms, firearm accessories, and ammunition from the United States to Rio de Janeiro, Brazil.
During this period, a shipment sent by Barbieri was intercepted in Rio de Janeiro by Brazilian law enforcement and found to contain approximately thirty AR-15 and AK-47 rifles and firearm magazines, all concealed in four 38-gallon Rheem water heaters. The water heaters were hollowed out and loaded with the contraband, and the serial numbers on each of the firearms had been obliterated. The same day that Brazilian authorities intercepted his shipment, Barbieri called and requested that the freight forwarder destroy the related paperwork.
Documentation provided by the freight forwarder revealed Barbieri’s historical shipments. In addition to shipping the four Rheem water heaters in which he concealed approximately thirty rifles, Barbieri also shipped to Brazil an additional 120 Rheem water heaters, as well as 520 electric motors and 15 air conditioning units, from May of 2013 to May of 2017, using that freight forwarder. These items are all consistent with objects used to conceal the illegal international shipment of firearms and ammunition.
In February 2018, federal agents executed a warrant to search a storage unit rented by Barbieri in Vero Beach, Florida. In the storage unit, law enforcement discovered 52 rifles, 49 of which were wrapped for shipment with obliterated serial numbers. In addition, law enforcement discovered dozens of high capacity firearm magazines, over 2,000 rounds of ammunition, and packaging materials. Barbieri was arrested the following day.
It is illegal for civilians to possess firearms in Brazil. According to Brazilian law enforcement, AK and AR rifles have a black market value of approximately $15,000 to $20,000. The retail cost of those firearms in the United States is approximately $700 to $1,000.
Neither Barbeiri, nor any of his coconspirators, obtained a license or written approval from the United States Department of State to export any defense articles. Non-automatic firearms, firearm accessories, and ammunition are articles designated as “defense articles,” pursuant to federal regulations.
Mr. Greenberg commended the investigative efforts of ICE-HSI, ATF, and CBP in connection with this matter. This case was prosecuted by Assistant U.S. Attorney Brian J. Shack.
Related court documents and information can be found on the District Court for the Southern District of Florida’s website at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Plantation Resident Convicted of Making False Statement to Federally Licensed Firearms DealerRead the Press Release
Yvens-Son Dudley Jeudy, 26, of Plantation, was convicted today by a federal jury of knowingly making a false statement to a licensed firearms dealer.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Ari C. Shapira, Special Agent in Charge, United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, made the announcement.
According to the court record, including evidence presented at trial, on September 17, 2017, Jeudy purchased two pistols from a federally licensed firearms dealer at the Fort Lauderdale Gun Show at the War Memorial Auditorium. On a document that he was required to complete at the time of the purchase (ATF Form 4473), Jeudy falsely claimed that he had not been charged with a felony criminal offense. This ATF form is required to be kept in the records of licensed firearms dealers. Contrary to his false claim, Jeudy was in fact pending trial in a Broward County, Florida case on three felony charges.
Jeudy is scheduled to be sentenced by U.S. District Court Judge James I. Cohn on September 26, 2018.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Mr. Greenberg commended the investigative efforts of the ATF. This case is being prosecuted by Assistant United States Attorney William T. Shockley.
Related court documents and information can be found on the District Court for the Southern District of Florida’s website at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Homestead Resident Arrested for Surreptitiously Producing and Distributing Pornographic Audio and Video Recordings of Himself Engaged in Sexual Activity with OthersRead the Press Release
A Homestead, Florida, man was arrested on an indictment yesterday, stemming from charges that he surreptitiously produced pornographic audio and video recordings of himself engaging in sexual activity with multiple men and then caused the videos to be posted on one or more subscription-based pornography websites without their knowledge or consent.
Bryan Deneumostier, 32, also known by the screen name “susanleon33326,” was charged in a five-count indictment in the Southern District of Florida with two counts of illegal interception of oral communications and three counts of record keeping violations.
U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, made the announcement today.
The indictment, which was unsealed July 18, references three victims whose identities are being withheld to protect their privacy. Without two of the referenced victims’ knowledge or consent, Deneumostier allegedly recorded his sexual encounters with them, and then caused these videos to be posted on one or more websites. These two allegedly nonconsensual recordings form the basis of the surreptitious-recording charges. The indictment further alleges that Deneumostier was a producer of pornography, used performers portrayed in a visual depiction of sexually explicit conduct, and did not ascertain the performers’ identification or age, as required by federal law.
Any individuals who believe they might be a victim are encouraged to contact HSI at (866) 347-2423.
The investigation is being conducted by HSI. Assistant U.S. Attorney Cary Aronovitz of the Southern District of Florida and Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information can be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fort Lauderdale Resident Sentenced to 5 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
On July 17, 2018, Roosevelt Leon Cooper, 43, of Fort Lauderdale was sentenced to 5 years in prison after previously pleading guilty to being a felon in possession of a firearm.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Rick Maglione, Chief, Fort Lauderdale Police Department, made the announcement.
According to the court record, on November 10, 2017, Cooper sold a Colt .45 caliber revolver to a pawn shop in Fort Lauderdale for $300. The revolver had been stolen on March 2, 2017, during a residential burglary in Port St. Lucie. Cooper, a convicted felon, was prohibited from possessing the firearm.
U.S. District Judge Federico A. Moreno sentenced Cooper to 60 months in prison, to be followed by 3 years of supervised release.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Mr. Greenberg commended the investigative efforts of the ATF and Fort Lauderdale Police Department. This case was prosecuted by Assistant United States Attorney William T. Shockley.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Palm Beach, Florida Home Health Care Company and Its Owner Agree to Resolve False Claims Act Allegations for $1.5 MillionRead the Press Release
Healthquest, Inc. and its owners, Frank Jaramillo and Ruth Jaramillo, have agreed to pay $1.5 million to the United States to settle allegations that Healthquest paid kickbacks to marketers in order to induce patient referrals, the United States Attorney’s Office announced today. Healthquest is a home health care company located in Palm Beach Gardens, Florida. The defendants also entered into a five-year Integrity Agreement with the Department of Health and Human Services, Office of Inspector General that includes, among other things, an Arrangements Review including a systems review and a transaction review to be conducted by an Independent Review Organization.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Shimon R. Richmond, Special Agent in Charge for the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), made the announcement.
The United States alleged that from December 2013 to May 2017, Healthquest paid kickbacks to its marketers in order to induce them to refer patients to Healthquest for home health services.
The lawsuit was filed by a former marketer for Healthquest. She filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties, known as relators, to sue on behalf of the government and receive a share of any recovery. The act also authorizes the government to intervene in and assume primary responsibility for litigating the lawsuit, as the government has done in this case. The relator in this case will receive $300,000.
“Kickback schemes drive up the cost of health care and lead to medical services that are often unnecessary and not in the best interests of patients,” said United States Attorney Benjamin G. Greenberg. “The U.S. Attorney’s Office will continue to hold health care companies and their owners responsible for using kickbacks to line their pockets at the expense of taxpayers and federal health care beneficiaries.”
“Referrals resulting from kickbacks that are designed to increase profits rather than improve the health of patients will not be tolerated,” said Special Agent in Charge Richmond. “OIG Special Agents are tireless in their efforts to uproot such schemes and eliminate fraud, waste, and abuse in Federal health care programs.”
The settlement was the result of a coordinated effort by the United States Attorney’s Office for the Southern District of Florida and HHS-OIG. The case was investigated and the settlement negotiated by Assistant U.S. Attorney Susan Torres. The integrity agreement was negotiated by OIG Senior Counsel Nancy Brown.
The case is captioned United States ex rel. Perez v. Healthquest, Inc. et al., No. 16-81147-Civ-Rosenberg (S.D. Fla.). The claims asserted against Healthquest, Inc., Frank Jaramillo, and Ruth Jaramillo are allegations only, and there has been no determination of liability.
Related court documents and information can be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Palm Beach County Resident Convicted of Conspiracy to Commit Sex Trafficking of a MinorRead the Press Release
On July 13, 2018, a federal jury in West Palm Beach, Florida, convicted Charles Edward Smith of conspiracy to commit sex trafficking of a minor.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Sarah J. Mooney, Chief of Police, West Palm Beach Police Department (WPBPD), made the announcement.
On or about March 13, 2018, members of the WPBPD discovered a 14-year old minor, identified as a missing person, in a West Palm Beach residence controlled by Smith. The defendant and other co-conspirators, including Michael Joseph Clark, operated a prostitution operation out of the residence. Smith had the minor work as a prostitute, setting up her sexual encounters, giving her drugs and requiring her to use her prostitution earnings to stay at the house.
Smith was convicted of one count of conspiracy to commit sex trafficking of children, in violation of Title 18, United States Code, Sections 1591 and 594. The defendant was acquitted of the charge of being a felon in possession of a firearm. Smith’s sentencing hearing is scheduled for September 20, 2018, before United States District Judge Donald M. Middlebrooks. Smith faces a maximum statutory sentence of life in prison on the charge of conviction.
On June 20, 2018, co-defendant Clark pleaded guilty to conspiracy to commit sex trafficking of children and two substantive counts of sex trafficking of children. Clark is scheduled to be sentenced by Judge Middlebrooks on August 27, 2018. Clark faces a mandatory minimum statutory sentence of ten years in prison and maximum sentence of life.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Greenberg commended the investigative efforts of the FBI and the WPBPD. The case was prosecuted by Assistant U.S. Attorneys Lothrop Morris and Ellen Cohen.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Five Miami-Dade Return Preparers Charged with Filing False Tax Returns with the IRSRead the Press Release
Five Miami-Dade return preparers were charged with filing false tax returns with the IRS, in an indictment unsealed today.
Benjamin G. Greenberg, U.S. Attorney for the Southern District of Florida, and Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Jamal Dyer, Jonathan Charles Edwards, Daniel Alvaro Murias, Jorge Alfonso Osorio Rodriguez, and Tramaine Das Sealy, were charged by indictment in the Southern District of Florida with one count of conspiracy to commit an offense against the United States, in violation of Title 18, United States Code, Section 371, and five counts of preparing false tax returns, in violation of Title 26, United States Code, Section 7206(2).
According to publicly filed court documents, the defendants allegedly prepared tax returns at The Tax Firm Miami, a business with multiple addresses in Miami-Dade County. The defendants and their co-conspirators unlawfully enriched themselves by charging clients tax preparation fees to prepare materially false tax returns. The defendants knowingly submitted false statements and claims on their clients' tax returns, including false claims to the Education Credit, the American Opportunity Credit, the Residential Energy Credit, and false Schedules C, resulting in a greater tax refund being paid from the IRS to their clients or a lesser tax liability owed by their clients to the IRS. The defendants collected fees from clients for each tax return prepared and deposited the fees into individual bank accounts that they each controlled. According to allegations made in court, the defendants caused approximately $15 million in tax loss over the three charged years.
If convicted of the charged offenses, the defendants are facing up to 5 years in prison for the conspiracy and up to 3 years in prison for each count related to the filing false tax returns.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Mr. Greenberg commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Daniel J. Marcet.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov
Dark Web Vendor Sentenced to 108 Months in Prison for Narcotics Trafficking and Money Laundering ChargesRead the Press Release
Adam Lemar Miles, a/k/a “NoStress,” 46, was sentenced today by U.S. District Judge Ursula M. Ungaro to a total of 108 months in prison, to be followed by 4 years of supervised release.
Benjamin G. Greenberg, U.S. Attorney for the Southern District of Florida; Adolphus P. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Office; Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Field Office; Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office; Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office; and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), made the announcement.
Miles previously pled guilty to one count of conspiracy to distribute a controlled substance, in violation of Title 21, United States Code, Section 846; three counts of distribution of a controlled substance, in violation of Title 21, United States Code, Section 841(a)(l); and one count of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h). As part of his plea agreement, Miles agreed to forfeit a shotgun, a rifle, two pistols, a revolver, several hundred rounds of ammunition, and $61,872 in seized U.S. currency.
According to publicly filed court documents, agents were investigating vendors who utilize Dark Web marketplaces to advertise and distribute controlled substances. Agents identified a vendor with variations of the moniker “NoStress” who was advertising controlled substances, including methamphetamine and hydrocodone, on dark web marketplaces. On three separate occasions, agents purchased and received 7 grams of methamphetamine, 11 hydrocodone pills, and 14 grams of crystal methamphetamine from vendor accounts operated by Miles on the dark web.
On January 10, 2018, a search warrant was executed on Miles’ home in Riverside, California. Evidence recovered from Miles’ home exposed the defendant as the vendor known as “NoStress.” Additional evidence revealed Miles had distributed at least 350 grams of methamphetamine on the dark web, since 2015.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (“OCDETF”), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Greenberg commended the investigative efforts of the DEA, Miami and Riverside, California Field Offices; IRS-CI, Miami Field Office; USPIS, Miami Field Office; ICE-HSI, Miami Field Office; ATF, Miami and Riverside, California Field Offices; and the FBI, Miami Field Office. Mr. Greenberg also thanked the staff of the U.S Attorney’s Office for the Central District of California for their assistance. The case was prosecuted by Assistant U.S. Attorney Breezye Telfair.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Five Charged for Elder Fraud SchemesRead the Press Release
Five U.S. individuals were charged today and yesterday for their roles in three separate elder fraud schemes. The schemes collectively defrauded tens of thousands of Americans, many of whom were elderly, out at least a hundred million dollars. Four defendants were charged in the Eastern District of New York, the other was charged in Southern District of Florida.
“Earlier this year, when we announced the largest elder fraud sweep in history, we sent a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are,” said Attorney General Jeff Sessions. “When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today’s indictment shows we are following through on this promise, and fraudsters everywhere should take note of it.”
Three Long Island Residents Indicted for Multi-Million Dollar Fraud Scheme
Three Long Island residents were charged with running a fraudulent mass-mailing scheme that tricked thousands of consumers into paying at least $30 million in fees for falsely promised prizes.
An indictment unsealed Wednesday charges Tully Lovisa, 55, of Huntington Station, New York; Shaun Sullivan, 37, of Merrick, New York; and Lorraine Chalavoutis, 61, of Greenlawn, New York, with mail fraud, money laundering, and conspiring to commit those offenses. The indictment also charges Lovisa with perjury and additional wire fraud and money laundering offenses. U.S. Postal Inspectors arrested all three defendants this morning.
“As alleged in the indictment, the defendants perpetrated a cruel hoax on their victims, many of them elderly and vulnerable, by sending promotional mailings that falsely claimed they would receive tens of thousands of dollars in prize money if they paid a fee,” said U.S. Attorney for the Eastern District of New York Richard P. Donoghue. “In so doing, Lovisa violated prior court orders directing him to stop engaging in mass mailing operations and his co-conspirators were well aware of prior enforcement action to stop this conduct. Protecting the elderly from brazen predators like the defendants is a priority of this Office and the Department of Justice.”
The defendants’ prize-promotion mailings led recipients, many of whom were elderly and vulnerable, to believe that they could claim a large cash prize in exchange for a modest fee, according to the indictment. This was false; victims who submitted fees did not receive large sums of money, the indictment alleges.
The scheme alleged in the indictment began after the Federal Trade Commission (FTC) sued Lovisa in 2010 for sending deceptive prize-promotion mailings. In response to that suit, a court enjoined Lovisa from any involvement with prize-promotion mailings. But, as alleged in the indictment, Lovisa did not stop. Rather, the indictment alleges that he worked with Sullivan and Chalavoutis to set up numerous prize-promotion companies using straw owners and aliases to continue defrauding hundreds of thousands of consumers. Chalavoutis, who provided various important operational services, allegedly helped conceal Lovisa’s and Sullivan’s control of the operation and misled others about the nature of the business.
The perjury charge against Lovisa relatedly stems from his submission to the FTC of a false compliance report, in which he claimed only to own a construction company and not be involved in prize-promotion mailings. The additional wire fraud and money laundering charges relate to Lovisa’s alleged further deception of the FTC related to the court-ordered sale of a home he owned in Las Vegas. According to the indictment, Lovisa arranged a sham sale of the house in September 2012 that allowed him to maintain control of the home and only disgorge $155,500 to the FTC. Lovisa then allegedly sold the house in April 2015 for $540,000.
“For far too long, fraudulent solicitations such as these have flooded seniors’ mailboxes. This indictment demonstrates a strong desire to end this conduct when administrative or civil remedies have been circumvented by these individuals at every opportunity,” said Chief Postal Inspector Guy Cottrell. “Today’s criminal charges show the continuing commitment by the U.S. Postal Inspection Service to rid the mail system of these pernicious threats to the livelihoods of the most vulnerable Americans.”
The mail fraud, wire fraud, and conspiracy charges each carry a statutory maximum sentence of twenty years in prison. The money laundering charges each carry a statutory maximum punishment of ten years in prison. The perjury charge carries a statutory maximum punishment of five years in prison. Each charge also carries a statutory maximum fine of $250,000 or twice the gross gain or gross loss from the offense.
An indictment is an accusation by a federal grand jury and is not evidence of guilt. The defendants should be presumed innocent unless and until proven guilty.
The United States Postal Inspection Service investigated the case. The case is being prosecuted by Trial Attorneys Daniel Zytnick and Timothy Finley of the Department of Justice’s Consumer Protection Branch and Assistant U.S. Attorney Charles P. Kelly of the Eastern District of New York.
List Broker Pleads Guilty to Conspiracy to Commit Mail Fraud
Steven Keats, of Bayside, New York, pleaded guilty to a charge of conspiracy to commit mail fraud. In his plea allocution, Keats admitted that while working at a Connecticut-based list brokerage firm, he arranged for lists of consumers’ names and addresses to be provided to a fraudulent mailer. The mailer, a Swiss entity, mailed deceptive solicitations to vulnerable victims. The mailing pieces falsely informed recipients that they had won large cash prizes and could collect the winnings by paying the mailer of a $50 fee. In reality, there was no prize, and the Swiss mailer simply collected victims’ payments. Keats admitted knowing that the names and addresses that he supplied to the Swiss entity would be used to send these deceptive mailing pieces to victims across the United States.
As a participant in the conspiracy, Keats provided the names of tens of thousands of U.S. consumers to the Swiss-based fraudulent mailer. The charge against Keats carries a statutory maximum penalty of 20 years in prison and a statutory maximum fine of $250,000 or twice the gross gain or gross loss from the offense.
The United States Postal Inspection Service investigated the case. The case is being prosecuted by Trial Attorneys Ehren Reynolds and Alistair Reader of the Department of Justice’s Consumer Protection Branch.
Florida Resident Charged with Conspiracy to Commit Mail Fraud
Eugene Marotta, of Fort Lauderdale, Florida, was charged by information with one count of conspiracy to commit mail fraud. The charging document alleges that Marotta was part of a conspiracy to defraud consumers by sending thousands of vulnerable victims deceptive mailing pieces that falsely promised prizes. The solicitations were from a shell company called Palm Beach Liquidation Gallery and were designed to deceive recipients into believing that they had won hundreds of thousands of dollars as well as an “exclusive liquidation asset.” To claim their winnings and the “asset,” recipients were directed to pay a total of $161.25 as a “liquidation fee.” In fact, there was no prize, and the “asset” was a cheap poster. Marotta and his co-conspirators pocketed the money sent by victims.
The scheme allegedly caused more $1 million in losses to at least 6,000 victims. The charge against Marotta carries a statutory maximum penalty of up to 5 years in prison and a statutory maximum fine of $250,000 or twice the gross gain or gross loss from the offense.
A criminal information is an accusation and not evidence of guilt. The defendant should be presumed innocent unless and until proven guilty.
The United States Postal Inspection Service investigated the case. The case is being prosecuted by Trial Attorney Ehren Reynolds of the Department of Justice’s Consumer Protection Branch.
For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorneys’ Offices for the Eastern District of New York and Southern District of Florida visit their websites at www.justice.gov/usao-edny and www.justice.gov/usao-sdfl.
Vero Beach Orthopedic Surgeon Sentenced to Life in Prison Following Conviction for Fentanyl Analog Drug Conspiracy Resulting in DeathRead the Press Release
Johnny Clyde Benjamin, Jr., M.D., 52, an orthopedic surgeon practicing in Vero Beach, Florida, was sentenced to life in prison today, after having been convicted at trial of participating in a conspiracy to possess with intent to distribute Furanyl Fentanyl which resulted in death, aiding and abetting the distribution of Furanyl Fentanyl which resulted in death, attempted possession with intent to distribute Acetyl Fentanyl, possession with intent to distribute Oxycodone, and conspiracy to possess with intent to distribute Hydrocodone and Oxycodone.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office; Peter Kuehl, Acting Special Agent in Charge, U.S. Food and Drug Administration, Office of Criminal Investigations (FDA-OCI); Mark Selby, Special Agent in Charge, U.S. Immigration and Custom Enforcement’s Homeland Security Investigations (ICE-HSI); Dave Aronberg, State Attorney, Palm Beach County State Attorney’s Office; Bruce Colton, State Attorney for the 19th Judicial Circuit; Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO); Deryl Loar, Sheriff, Indian River County Sheriff’s Office; and Renee Purden, Chief, Orlando Melbourne Airport Police Department, made the announcement.
U.S. District Court Judge William P. Dimitrouleas sentenced Dr. Benjamin to life in prison, to be followed by five years of supervised release and was ordered to pay restitution in the amount of $10,241.38, in addition to other counts. Dr. Benjamin was convicted by a Fort Lauderdale federal jury on April 27, 2018.
The evidence presented at the trial established that on September 1, 2016, a young woman who resided in Wellington, Florida died after overdosing on counterfeit oxycodone pills. The pills contained a Fentanyl analog, Furanyl Fentanyl, as the active ingredient. Furanyl Fentanyl is an extremely powerful synthetic opioid, many times more powerful than street level heroin or oxycodone.
Following a toxicology analysis, the Office of the District Medical Examiner of Palm Beach County attributed the cause of decedent’s death to the Furanyl Fentanyl.
An extensive investigation by law enforcement identified Dr. Benjamin as the source of the Furanyl Fentanyl pills that caused the decedent’s death. The investigation also revealed that Dr. Benjamin was involved with the manufacture and distribution of counterfeit oxycodone pills, outside the South Florida area.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Mr. Greenberg commended the investigative efforts of DEA, ATF, FDA-OCI, PBSO, HSI-ICE, Indian River County Sheriff’s Office, and Orlando Melbourne Airport Police Department. Mr. Greenberg also thanked the Palm Beach County State Attorney’s Office and State Attorney’s Office for the 19th Judicial Circuit for their assistance. This case was prosecuted by Assistant U.S. Attorneys John McMillian and Rolando Garcia.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Davie Woman Convicted of Participating in an IRS Impersonation ScamRead the Press Release
A Davie woman was convicted of wire fraud and conspiracy to commit wire fraud in federal court on Tuesday.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Gary L. Smith, Special Agent in Charge, Treasury Inspector General for Tax Administration (TIGTA), made the announcement.
Amy E. Ahrens, 38, was found guilty after a two-day trial of seven counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, for her role in an IRS impersonation scam. At sentencing, the defendant faces up to twenty years imprisonment, a $250,000 fine, up to five years of supervised release, and restitution as to each count. The defendant is scheduled to be sentenced by U.S. District Judge William P. Dimitrouleas on September 12, 2018 at 1:15 P.M. in Fort Lauderdale.
According to evidence presented at trial, an IRS impersonation scam is operated by individuals who falsely represent themselves as employees of the IRS to obtain money from victims. Typically, those executing the fraudulent scheme make unsolicited telephone calls to people and tell them that they are IRS agents or officers calling on behalf of the IRS. During these calls, the call recipient is told that they have an outstanding IRS debt that must be paid immediately. The impersonator further threatens the call recipient with either arrest, seizure of property or a lawsuit if they do not immediately settle the bogus IRS debt. Victims are subsequently instructed to wire money to individuals they believe are IRS employees to avoid arrest, property seizure or a lawsuit.
According to the evidence presented at trial, Ahrens used her Bank of America and Wells Fargo accounts to receive money from victims of the scam. The trial testimony revealed that five victims received telephone calls purported to be from the IRS. The victims were threatened with arrest or having their assets seized if they did not pay a fictitious IRS tax debt. The callers made these threats and used other methods of intimidation to persuade the victims to make large cash deposits in the Ahrens’ bank accounts.
The evidence at trial further showed that between November 3, 2017 and November 8, 2017, Ahrens received seven cash deposits in her bank accounts totaling $47,366. The trial evidence and testimony established that Ahrens withdrew $46,950 in cash and used a portion of the money for a vacation in Las Vegas.
Since October 2013, TIGTA has received reports of more than 2.3 million impersonation related calls with more than 13,500 victims reporting losses of over $67 million.
Mr. Greenberg commended the investigative efforts of TIGTA and the U.S. Department of the Treasury. The case was prosecuted by Assistant U.S. Attorney Laurence J. Bardfeld.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Sixteen Saint Lucie County Residents Sentenced to Federal Prison on Firearms and Drug Trafficking Charges as Part of Project Safe Neighborhoods Violence Reduction ProgramRead the Press Release
Since April of 2017, sixteen Fort Pierce residents have been convicted and sentenced to prison on various federal firearms and drug trafficking charges, as part of the Project Safe Neighborhoods violence reduction program in South Florida.
Benjamin Greenberg, United States Attorney for the Southern District of Florida; Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division; Ken J. Mascara, Sheriff, St. Lucie County Sheriff’s Office; Diane Hobley-Burney, Chief, Fort Pierce Police Department (FPPD); Amos Rojas, Jr., United States Marshal, United States Marshals Service, Southern District of Florida (USMS); Bruce Colton, State Attorney, Saint Lucie County Office of the State Attorney for the 19th Judicial Circuit; and Danny Banks, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), Orlando Field Office, made the announcement.
The joint federal and state prosecution of the defendants, follows a two-year long investigation (“Operation Grand Slam”) into violent gang-related activity in Saint Lucie County. The investigation resulted in the conviction of 16 defendants on federal firearms and narcotics charges, the seizure of 70 firearms, and the recovery of more than 1 kilogram of cocaine, 3 ounces of heroin, and 300 grams of MDMA. An additional 62 defendants are being prosecuted by the State Attorney’s Office for the 19th Judicial District on felony charges, including: carrying a concealed firearm, possession with intent to distribute cocaine, possession with intent to distribute heroin, possession with intent to distribute MDMA, burglary, and cruelty towards a child.
The following defendants have been sentenced in U.S. District Court:
- James Allen Brown, Jr., 26, pled guilty to possession of a firearm and ammunition by a convicted felon (Case No. 18CR14003). On June 19, 2018, he was sentenced to 94 months in prison, to be followed by 3 years of supervised release.
- Sylvester Davis, 25, pled guilty to possession of a firearm and ammunition by a convicted felon and possession with intent to distribute marijuana (Case No. 17CR14072). On June 19, 2018, he was sentenced to 41 months in prison, to be followed by 2 years of supervised release.
- Damonta Vontarus O’Neal, 20, pled guilty to possession of a firearm and ammunition by a convicted felon (Case No. 18CR14005). On June 19, 2018, he was sentenced to 77 months in prison, to be followed by 3 years of supervised release.
- Travius Ruffin, 25, pled guilty to possession of a firearm and ammunition by a convicted felon (Case No. 18CR14004). On June 7, 2018, he was sentenced to 96 months in prison, to be followed by 2 years of supervised release.
- Lloyd Cedric Coley, 28, pled guilty to possession of a firearm and ammunition by a convicted felon (Case No. 17CR14065). On April 26, 2018, he was sentenced to 40 months in prison, to be followed by 3 years of supervised release.
- Brian Gordon, 39, was convicted at trial by a Fort Pierce of possession of a firearm and ammunition by a convicted felon and carrying a firearm in furtherance of a drug trafficking crime in violation, and possession with intent to distribute crack cocaine (Case No. 16CR14064). On January 26, 2018, Gordon was sentenced to 114 months in prison, to be followed by 5 years of supervised release (sentence concurrent to St. Lucie County matters).
- James Arthur Parker, Jr., 40, pled guilty to one count of possession with intent to distribute 28 grams or more of cocaine base and less than 50 kilograms of marijuana and possession of a firearm in furtherance of a drug trafficking crime (Case No. 17CR14048) On December 20, 2017, he was sentenced to 120 months in prison, to be followed by 5 years of supervised release (sentence concurrent to other matters).
- Alexander Fuentes, 26, pled guilty to possession of a firearm and ammunition by a convicted felon and possession with intent to distribute crack cocaine (Case No. 17CR14029). On October 13, 2017, he was sentenced to 78 months in prison, to be followed by 3 years of supervised release.
- Kenvonte Javon Gaskin, 27, pled guilty to possession with intent to distribute crack cocaine; carrying a firearm during and in relation to and possession of a firearm in furtherance a drug trafficking crime; one count of possession of a firearm and ammunition by a convicted felon; and two counts of possession of ammunition by a convicted felon (Case No. 17CR14051). On October 3, 2017, Gaskin was sentenced to 90 months in prison, to be followed by 5 years of supervised release (sentence concurrent to St. Lucie County matters).
- Eugene Curry, Jr., 45, pled guilty to possession with intent to distribute crack cocaine and heroin and possession of a firearm in furtherance of a drug trafficking crime (Case No. 17CR14030). On August 17, 2017, he was sentenced to 96 months in prison, to be followed by 3 years of supervised release.
- Morris Jones, Jr., 27, pled guilty to possession of a firearm and ammunition by a convicted felon, and possession with intent to distribute crack cocaine (Case No. 16CR14063). On June 26, 2017, he was sentenced to 51 months in prison, to be followed by 3 years of supervised release.
- Cornelius Trevon Ivory, 20, pled guilty to possession of a firearm and ammunition by a convicted felon and conspiracy to possess with intent to distribute crack cocaine (Case No. 16CR14078). On June 7, 2017, he was sentenced to 71 months in prison, to be followed by 3 years of supervised release.
- Charles Brooks, 20, pled guilty to possession of a firearm and ammunition by a convicted felon and possession with intent to distribute crack cocaine (Case No. 16CR14040). On May 18, 2017, he was sentenced to 24 months in prison, to be followed by 3 years of supervised release.
- Kevrence Lavale Corde, 25, pled guilty to conspiracy to possess with intent to distribute crack cocaine (Case No. 16CR14078). On May 4, 2017, he was sentenced to 84 months in prison, to be followed by 3 years of supervised release.
- John Henry McGee IV, 24, pled guilty to possession of a firearm and ammunition by a convicted felon (Case No. 16CR14079). On April 28, 2017, he was, and was sentenced to 10 months in prison, to be followed by 1 year of supervised release.
- Onel Nonnombre, 22, pled guilty to possession of ammunition by a convicted felon, in violation and possession with intent to distribute crack cocaine (Case No. 16CR14088). On April 27, 2017, he was sentenced to 72 months in prison, to be followed by 3 years of supervised release.
These cases are all the result of Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
These cases were investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) and Project Safe Neighborhoods (PSN). OCDETF is a multi-agency task force investigates armed drug traffickers as well as the gang violence that is generated by drug trafficking. PSN is a Department of Justice nationwide initiative that combines traditional law enforcement activities with community-based support and intervention programs. The two primary goals of the PSN initiative are to reduce and prevent violent crimes and to help past offenders adjust and re-enter the community. This program emphasizes and facilitates cooperative federal, state and local prosecution of firearm crimes, violent criminals, repeat violent offenders and gang related criminal activity.
Mr. Greenberg commended the investigative efforts of ATF, the St. Lucie County Sheriff’s Office, FPPD, USMS, and FDLE, in support of this operation. Mr. Greenberg thanked the Office of the State Attorney 19th Judicial District for their partnership during the course of this investigation and resulting prosecutions. These cases were prosecuted by Assistant United States Attorney Marton Gyires.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Broward County Residents Sentenced to Prison for Selling Fentanyl, Heroin and CocaineRead the Press Release
The ringleader of a fentanyl, heroin and cocaine distribution center was sentenced to 24 years in prison. His co-defendant was sentenced to more than 4 years in prison, for helping to distribute the controlled substances.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, Rick Maglione, Chief, Fort Lauderdale Police Department and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
On April 18, 2018, Lenden Pendergrass, 54, and Heather Loiola, 30, both of Fort Lauderdale, previously plead guilty to conspiring to possess with intent to distribute fentanyl, in violation of Title 21, United States Code, Section 846 and possession with intent to distribute fentanyl and crack cocaine, in violation of Title 21, United States Code, Section 841. Pendergrass also plead guilty to being a felon unlawfully in possession of a firearm and ammunition, in violation of Title 18, United States Code, Section 922(g). United States District Judge Federico A. Moreno sentenced Pendergrass to 292 months in prison and Loiola to 57 months in prison. In addition, both defendants were sentenced to 3 years of supervised release.
According to the court record, from on or about July 26, 2017, through on or about February 23, 2018, Pendergrass and Loiola were engaged in a conspiracy to distribute fentanyl. Pendergrass operated the narcotics distribution center from his residence in Fort Lauderdale, Florida. He would sell what he claimed to be heroin, but in fact was either fentanyl or a mixture of fentanyl and cocaine. He also sold crack cocaine. Loiola worked as a drug distributor for Pendergrass, who possessed and caused the distribution of approximately four ounces of fentanyl a week.
On December 23, 2017, a victim purchased purported heroin, from Loiola, that had been supplied by Pendergrass. The victim ingested the purported heroin that same day and overdosed. On December 26, 2107, the victim passed away. The medical examiner ruled it a possible opioid overdose.
On January 31, 2018, the Fort Lauderdale Police Department stopped a vehicle driven by an individual who resided at Pendergrass’s house. A deceased adult male was found in the backseat of the vehicle. The victim purchased purported heroin from Pendergrass’s residence.
On February 23, 2018, during the execution of a search warrant at Pendergrass’s residence, law enforcement recovered approximately four ounces of fentanyl, containing no heroin, a 9mm semi-automatic handgun with 6 rounds of ammunition, approximately half an ounce of crack cocaine, two scales and $1,596.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (“OCDETF”), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Greenberg commends the investigative efforts of the DEA, Fort Lauderdale Police Department and FBI. Mr. Greenberg thanked the Sunrise Police Department and Coral Springs Police Department for their assistance with this matter. This case was prosecuted by Assistant United States Attorneys Francis I. Viamontes and Neil Karadbil. Assistant United States Attorney Robert J. Brady, Jr. also provided assistance.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
South Florida Man Pleads Guilty to Hate Crime for Threatening to Blow up MosqueRead the Press Release
The Justice Department today announced that Dustin Allen Hughes, 26, of Cutler Bay, Florida, pleaded guilty yesterday in the Southern District of Florida to one count of obstructing the free exercise of religious beliefs through the threatened use of a dangerous weapon and explosive, in connection with making a phone call in which he threatened to detonate a bomb at a mosque in Pembroke Pines, Florida.
During the plea hearing, Hughes admitted that on May 5, he called an emergency contact for the Jamaat Ul Muttaqeen Mosque of Pembroke Pines, Florida, and left a hate-filled and profanity-laden voicemail message denigrating Islam and threatening to blow up the mosque. Hughes further admitted that in his message he specifically stated that he had a detonator, that he was “going to blow your . . . temple up,” and that “you guys are all going to be up in flames after I’m done with you.”
Following the threatening voice message, law enforcement was contacted and immediately responded, but no bomb was uncovered after an extensive exterior and interior sweep of the mosque was conducted.
Sentencing is scheduled for Sept. 6 before U.S. District Judge Federico A. Moreno in Miami. Hughes faces a maximum sentence of 20 years in prison.
“Our office is committed to protecting the right to freely exercise one’s religious beliefs,” said United States Attorney Benjamin Greenberg for the Southern District of Florida. “Obstructing this right, by force or threat of force, constitutes a hate crime that we will continue to prosecute to the fullest extent of the law.”
“The Justice Department will not tolerate threats of hate violence, which threaten an entire community’s sense of safety and security,” said Acting Assistant Attorney General John Gore. “The Justice Department will continue to vigorously prosecute hate crimes so that all people, no matter how they worship, can live their lives freely and without fear.”
“Freedom of religion is a fundamental right for every American,” said Robert F. Lasky, Special Agent in Charge of the FBI Miami Field Office. “The FBI and its partners will work tirelessly to ensure anyone who threatens those rights is held accountable.”
This case was investigated by the FBI’s Miami Area Corruption Task Force and the FBI’s Joint Terrorism Task Force (JTTF). The Pembroke Pines Police Department, Miami-Dade Police Department and the City of Miami Police Department also provided assistance with this matter. The case is being prosecuted by Assistant U.S. Attorney Michael Davis of the Southern District of Florida and Trial Attorney Samantha Trepel of the Civil Rights Division.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida atwww.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
South Florida Doctor Convicted of Participating in a Conspiracy to Illegally Dispense Opioids and Other DrugsRead the Press Release
Dr. Andres Mencia, 64, of Fort Lauderdale, Florida was convicted today by a federal jury in Fort Lauderdale, of participating in a conspiracy to distribute a controlled substance.
U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration (DEA), Miami Field Division; Special Agent in Charge Shimon R. Richmond of U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
According to evidence admitted at trial, Dr. Mencia ran Adult & Geriatric Institute of Florida lnc, d/b/a AG1 Medical & Dental (AG1), in Oakland Park, Florida. Beginning in or around January 2014 and continuing through October 2017, Dr. Mencia, and office personnel Oscar Luis Ventura-Rodriguez, 41, of Ft. Lauderdale, Nadira Sampath-Grant, 51, of Margate, and John Mensah, 50, of Miami, conspired to perform sham consultations with cash-paying patients. The evidence showed that the true and intended purpose of the consultations was to improperly issue the patients’ prescriptions for opioids and narcotics, such as Oxycodone, OxyContin and Percocet, in exchange for cash payments. Pursuant to Dr. Mencia’s instructions, co-conspirators kept track of the drug-seeking patients by identifying them as “CS” (controlled substance) “patients.” On occasion, Dr. Mencia provided his co-conspirators pre-signed prescriptions to issue the “CS” patients prescriptions for controlled substances in his name. During the course of the conspiracy, Dr. Mencia was not providing a medically meaningful consultation but was in fact acting outside the scope of his professional practice and without legitimate medical purpose.
Dr. Mencia is scheduled to be sentenced by U.S. District Judge William P. Dimitrouleas on Sept. 7, at 1:30 p.m. in Fort Lauderdale.
Ventura-Rodriguez, Sampath-Grant and Mensah previously pleaded guilty to conspiracy to defraud the United States by unlawfully distributing controlled substances. Judge Dimitrouleas sentenced Ventura-Rodriguez to serve 60 months in prison, to be followed by three years of supervised release. A re-scheduled sentencing date has not yet been set for Sampath-Grant. Sentencing is set for John Mensah on Aug. 24, at 2:15 p.m.
The investigation was conducted by DEA, HHS-OIG and ICE-HSI. The Aventura Police Department, City of Miami Police Department, Miami-Dade Police Department, and Miami Gardens Police Department assisted in the investigation. This case was prosecuted by Assistant U.S. Attorney Michael Gilfarb of the Southern District of Florida and Trial Attorney Adam G. Yoffie of the Criminal Division’s Fraud Section.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida atwww.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
South Florida Doctor Convicted of Participating in a Conspiracy to Illegally Dispense Opioids and Other DrugsRead the Press Release
Dr. Andres Mencia, 64, of Fort Lauderdale, Florida was convicted today by a federal jury in Fort Lauderdale, of participating in a conspiracy to distribute a controlled substance.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida; Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration (DEA), Miami Field Division; Special Agent in Charge Shimon R. Richmond of U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
According to evidence admitted at trial, Dr. Mencia ran Adult & Geriatric Institute of Florida lnc, d/b/a AGI Medical & Dental (AGI), in Oakland Park, Florida. Beginning in or around January 2014 and continuing through October 2017, Dr. Mencia, and office personnel Oscar Luis Ventura-Rodriguez, 41, of Ft. Lauderdale, Nadira Sampath-Grant, 51, of Margate, and John Mensah, 50, of Miami, conspired to perform sham consultations with cash-paying patients. The evidence showed that the true and intended purpose of the consultations was to improperly issue the patients’ prescriptions for opioids and narcotics, such as Oxycodone, OxyContin and Percocet, in exchange for cash payments. Pursuant to Dr. Mencia’s instructions, co-conspirators kept track of the drug-seeking patients by identifying them as “CS” (controlled substance) “patients.” On occasion, Dr. Mencia provided his co-conspirators pre-signed prescriptions to issue the “CS” patients prescriptions for controlled substances in his name. During the course of the conspiracy, Dr. Mencia was not providing a medically meaningful consultation but was in fact acting outside the scope of his professional practice and without legitimate medical purpose.
Dr. Mencia is scheduled to be sentenced by U.S. District Judge William P. Dimitrouleas on Sept. 7, at 1:30 p.m. in Fort Lauderdale.
Ventura-Rodriguez, Sampath-Grant and Mensah previously pleaded guilty to conspiracy to defraud the United States by unlawfully distributing controlled substances. Judge Dimitrouleas sentenced Ventura-Rodriguez to serve 60 months in prison, to be followed by three years of supervised release. A re-scheduled sentencing date has not yet been set for Sampath-Grant. Sentencing is set for John Mensah on Aug. 24, at 2:15 p.m.
The investigation was conducted by DEA, HHS-OIG and ICE-HSI. The Aventura Police Department, City of Miami Police Department, Miami-Dade Police Department, and Miami Gardens Police Department assisted in the investigation. This case was prosecuted by Assistant U.S. Attorney Michael Gilfarb of the Southern District of Florida and Trial Attorney Adam G. Yoffie of the Criminal Division’s Fraud Section.
Southern District of Florida Charges 124 Individuals Responsible for $337 Million in False Billing as Part of National Healthcare Fraud TakedownRead the Press Release
Largest National Health Care Fraud Enforcement Action in Department of Justice History Resulted in Total of 76 Doctors Charged and 84 Opioid Cases Involving More Than 13 Million Illegal Dosages of Opioids
Benjamin G. Greenberg, U.S. Attorney for the Southern District of Florida; Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Miami Regional Office; John F. Khin, Special Agent in Charge, Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office; Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office; Pam Bondi, Florida Attorney General (Florida Medicaid Fraud Control Unit); Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Christopher Cave, Special Agent in Charge, U.S. Postal Service Office of Inspector General (USPS OIG), Southern Area Field Office; Frank Robey, Director, U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit; Scott Gottlieb, M.D., Commissioner, U.S. Food and Drug Administration (FDA); Jimmy Patronis, Florida Chief Financial Officer, Division of Investigative and Forensic Services (DIFS); Tom Howard, Inspector General, Amtrak Office of Inspector General (Amtrak-OIG); Isabel Colon, Atlanta Regional Director, U.S. Department of Labor’s Employee Benefits Security Administration (DOL-EBSA); Norbert E. Vint, Acting Inspector General, U.S. Office of Personnel Management, Office of Inspector General (OPM-OIG); and Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), announced that in the Southern District of Florida a total of 124 defendants were charged with offenses relating to their alleged participation in various fraud schemes involving over $337 million in false billings for services including home health care, substance abuse treatment, lab testing, and pharmacy fraud.
The South Florida charges are part of the largest ever national health care fraud enforcement action by the Medicare Fraud Strike Force. Attorney General Jeff Sessions announced today that more than 601 defendants were charged, across 58 federal districts, including 76 doctors, as well as nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $2 billion in false billings. Of those charged, over 162 defendants, including doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS announced today that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse.
The charges announced today aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department of Justice (DOJ). According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.
According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided. In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare for services that were medically unnecessary or never performed. Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of submitting a total of over $2 billion in fraudulent billings. The number of medical professionals charged is particularly significant, because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims. Aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system.
“Today’s takedown sends a clear message that those who steal our tax dollars and divert money from much needed government programs to line their own pockets will be brought to justice,” stated U.S. Attorney Benjamin Greenberg. The same is true of those individuals who facilitate these crimes by enabling the perpetrators to financially benefit from their misdeeds. The South Florida based schemes involved hundreds of millions of dollars in fraud, and in some cases resulted in significant harm to patients in need of substance abuse treatment. When that treatment is withheld because of someone’s greed, the very people who are supposed to help the addicts end up enabling their addiction. Side by side with our great partners, we will continue to fight against all forms of healthcare fraud in South Florida.”
“Health care fraud and opioid abuse are threats to this country, both in terms of the well-being of patients and the viability of government health care programs,” said Shimon R. Richmond, Special Agent in Charge, HHS-OIG. “This takedown sends a clear message that criminals who engage in health care fraud schemes and illicit opioid distribution will be caught. Working collaboratively with our state and federal partners, we will continue to bring these criminals to justice.”
John F. Khin, Special Agent in Charge, DCIS-Southeast Field Office, stated, “As part of the National Health Care Fraud multi-agency joint effort, the DCIS-Southeast Field Office contributed significant resources and efforts to achieve a successful operation to effectively combat widespread fraud and abuse, and preserve the integrity of TRICARE, a vital DoD program serving U.S. service members, retirees, and their families.”
“Health care fraud costs taxpayers billions of dollars, increases medical costs and even helps fuel the national opioid crisis,” stated Florida Attorney General Pam Bondi. “Our law enforcement partners and my Medicaid Fraud Control Unit aggressively investigate fraud in Florida, and as part of this massive nationwide effort, we were able to arrest some of the worst offenders and stop the illegal sale of prescription opioids—and hopefully safe lives.”
“Today’s local announcement reinforces law enforcement’s continued commitment to combat healthcare fraud in South Florida. IRS-CI is proud to participate in these cases and be part of the Greater Palm Beach County Health Care Fraud Task Force where we can provide our expertise to conduct financial analysis and unravel the complex financial transactions involved in these fraudulent schemes. IRS-CI will continue to allocate resources to fight the battle against healthcare fraud and will investigate individuals who are committing crimes while motivated by greed,” stated Michael J. DePalma, Acting Special Agent in Charge, IRS-CI.
“This historic announcement marks a significant effort by the National Healthcare Fraud Takedown task force and should send a clear message that these crimes will not be tolerated,” said Special Agent in Charge, Christopher Cave, USPS OIG. “The USPS Office of Inspector General, along with our law enforcement partners, will continue to aggressively pursue these investigations in order to ensure continued oversight and protection of the Postal Service and federal benefits programs.”
“We applaud the coordinated efforts of our federal law enforcement partners in this action today. The FDA is proud to play a role in supporting these investigations,” said U.S. Food and Drug Administration Commissioner Scott Gottlieb, M.D. “A key aspect of the FDA’s mission to protect public health is creating a regulatory framework that helps ensure that compounded drugs are dispensed to patients who have a legitimate medical need for them.”
“Insurance fraud has seeped into our opioid treatment homes in Florida, impacting countless families and communities,” said CFO Jimmy Patronis. “The collaborative efforts of national, state and local law enforcement are essential for combatting this type of activity. My office, along with the U.S. Attorney’s Office for the Southern District of Florida and our law enforcement partners remains committed to safeguarding Floridians while reminding those who seek to deceive and defraud – they will be held accountable for their actions.”
“These cases reinforce our commitment and determination to pursue those who would defraud Amtrak’s health care programs and target such vulnerable populations,” said Amtrak Inspector General Tom Howard. “Our agents will continue to hold perpetrators accountable and to protect Amtrak, its employees and their dependents.”
“Today’s announcement is a reflection of federal, state, and local partners joining forces to root out fraud and abuse in the healthcare system,” said Atlanta Regional Director for DOL-EBSA Isabel Colon. “The department will continue to take all actions necessary to put a stop to those who would defraud workers and their families of hard-earned employee benefits.”
“The OPM-OIG will continue to work with the Department of Justice and our other law enforcement partners to protect the integrity of the Federal Employees Health Benefits Program and ensure that Federal employees, annuitants, and their families receive unbiased medical care from ethical professionals,” said Norbert E. Vint, Acting OPM Inspector General.
The following are some of the recent health care fraud cases that have been charged in the Southern District of Florida:
I. SUBSTANCE ABUSE TREATMENT FRAUD AND ILLEGAL DISTRIBUTION OF OPIOIDS
The U.S. Attorney’s Office for the Southern District of Florida continues to partner with federal, state and local law enforcement agencies and the Greater Palm Beach Health Care Fraud Task Force (“Task Force”) to target fraud and other criminal practices in the substance abuse treatment/medical industry, including: money laundering; billing for treatment and laboratory testing that was not actually provided and not medically necessary; submission of claims that were solicited through the payment of kickbacks and bribes to patients, sober home owners, and treatment center owners; and the illegal distribution of opioids. To date, at least 34 individuals have been charged federally, 19 have been convicted, $20,292,916.37 in restitution has been ordered, and more than $4 million in restitution has been collected.
A. Health Care Fraud and Money Laundering
1. United States v. Kenneth Bailynson, et al.,
Case No. 18-80124-CR-Rosenberg
On June 22, 2018, Kenneth Bailynson, 45, of West Palm Beach, Florida, owner of GDSL, Inc., a/k/a Good Decisions Sober Living, Inc. (“GDSL”) in West Palm Beach, Stephanie Curran, 35, of Lake Worth, Florida, an employee of GDSL, Mark Agresti, 55, of Palm Beach, Florida, the Medical Director of GDSL, and Matthew Noel, 32, of Louisville, Kentucky, an employee of GDSL, were charged by indictment. The defendants were charged with conspiracy to commit health care and wire fraud, substantive counts of health care fraud, and substantive counts of money laundering for their involvement in a scheme at GDSL to illegally recruit patients, pay kickbacks, and defraud health care benefit programs by billing for widespread fraudulent urine testing that was not medically necessary. The indictment alleges that during the course of the fraudulent scheme, from September 2011 through December 2015, GDSL submitted claims for substance abuse treatment services in excess of approximately $106,576,358 to the insurance plans, and received insurance payments of approximately $31,356,527.
This case is being prosecuted by DOJ Trial Attorney James V. Hayes, formerly an Assistant U.S. Attorney in the Southern District of Florida.
2. United States v. Anthony Jackson,
Case No. 18-80040-CR-Middlebrooks
On June 21, 2018, following his guilty plea to conspiracy to commit health care fraud, Anthony Jackson, 51, of Lantana, Florida, a Certified Addiction Counselor at Reflections Treatment Center in Margate, Florida and owner of Pantherview Sober Home in Boynton Beach, Florida was sentenced to 42 months in prison, to be followed by 3 years of supervised release. Jackson also was ordered to pay $5,122,886.86 in restitution.
The case is being handled by Assistant U.S. Attorneys A. Marie Villafaña and Alexandra Chase.
3. United States v. Eric Snyder, et al.,
Case No. 18-80111-CR-Rosenberg
On June 7, 2018, Eric Snyder, 31, of Delray Beach, Florida, an owner of Halfway There Florida, LLC/A Safe Place (“HWT”), a Delray Beach sober home, and Real Life Recovery Delray LLC (“RLR”), a substance abuse treatment facility, Paul R. Materia, 43, of Port St. Lucie, Florida, the CEO of RLR, and patient brokers Joseph Lubowitz, 29, of Pennsylvania and West Palm Beach, Florida, and Christopher Fuller, 33, of West Palm Beach, Florida, were charged by indictment. The defendants were charged with conspiracy to commit health care and wire fraud, substantive counts of health care fraud, substantive counts charging a violation of the Travel Act, conspiracy to commit money laundering, and substantive counts of money laundering for their involvement in a scheme to illegally recruit patients, pay kickbacks, and defraud health care benefit programs by billing for urine testing and substance abuse treatment that was medically unnecessary, and that was never provided. During the course of the alleged fraudulent scheme, from January 2011 through September 2015, HWT/RLR submitted claims for substance abuse treatment services in excess of approximately $58,209,385 to insurance plans, and received insurance payments of approximately $20,190,941. Eric Snyder and Christopher Fuller were previously charged with conspiracy to commit health care fraud in this case, in a criminal complaint filed in July 2017 (Case No. 17-MJ-08268-Brannon).
This case is being prosecuted by DOJ Trial Attorney James V. Hayes, formerly an Assistant U.S. Attorney in the Southern District of Florida.
4. United States v. Mark Jeffrey Hollander,
Case No. 18-80102-CR-Rosenberg
On May 21, 2018, Mark Jeffrey Hollander, 44, of Miami, Florida, was charged by an information with laundering the proceeds of health care fraud, that is, monies he received from Smart Lab LLC, a clinical laboratory located in Palm Beach Gardens, Florida.
The case is being handled by Assistant U.S. Attorneys A. Marie Villafaña and Alexandra Chase
5. United States v. Lawrence Weisberg,
Case No. 18-80108-CR-Rosenberg
On May 29, 2018, Lawrence Weisberg, 51, of Boca Raton, Florida, was charged by an information with laundering the proceeds of health care fraud, that is, monies he received from Smart Lab LLC, a clinical laboratory located in Palm Beach Gardens, Florida.
The case is being handled by Assistant U.S. Attorneys A. Marie Villafaña and Alexandra Chase.
6. United States v. Lanny Fried,
Case No. 18-80100-CR-Rosenberg
On May 21, 2018, Lanny Fried, 41 of Miami, Florida, was charged by an information with conspiracy to commit money laundering of proceeds from health care fraud, that is, monies he and others received from Smart Lab LLC, a clinical laboratory located in Palm Beach Gardens, Florida.
The case is being handled by Assistant U.S. Attorneys A. Marie Villafaña and Alexandra Chase.
7. United States v. Bosco Vega,
Case No. 18-80101-CR-Middlebrooks
On May 22, 2018, Bosco Vega, 52, of Miami, Florida, was charged by an information with laundering the proceeds of health care fraud, that is, monies he received from Smart Lab LLC, a clinical laboratory located in Palm Beach Gardens, Florida.
The case is being handled by Assistant U.S. Attorneys A. Marie Villafaña and Alexandra Chase.
B. Illegal Distribution of Opioids
8. United States v. Arman Abovyan and Tina Marie Barbuto,
Case No. 18-80122-CR-Middlebrooks
On June 19, 2018, Arman Abovyan, 44, of Boca Raton, Florida, former Medical Director of Reflections Treatment Center in Margate and Journey to Recovery in Boca Raton, and Tina Marie Barbuto, 39 of Boca Raton, Florida, former Clinical Director of Reflections Treatment Center in Margate were charged by indictment with one count of conspiracy to distribute and dispense controlled substances outside the course of medical practice and two counts of distribution of controlled substances outside the course of medical practice.
The case is being handled by Assistant U.S. Attorneys A. Marie Villafaña and Alexandra Chase.
9. United States v. Kenneth Rivera-Kolb,
Case No. 18-80121-CR-Cohn
On June 19, 2018, Kenneth Rivera-Kolb, 66, of Largo, Florida, was charged by indictment with one count of conspiracy to distribute controlled substances in relation to his employment with Angel’s Recovery, a substance abuse treatment facility located in Palm Beach County, Florida. Rivera-Kolb was a licensed physician in the State of Florida. In 2013, he was hired as the Medical Director for Angel’s Recovery. As the Medical Director of Angel’s Recovery, Rivera-Kolb prescribed controlled substances for patients. From approximately February 17, 2015 through September 2, 2015, after the suspension of his medical license, Rivera-Kolb allegedly continued to prescribe controlled substances to patients of Angel’s Recovery.
The case is being handled by Assistant U.S. Attorneys A. Marie Villafaña and Alexandra Chase.
10. United States v. Scott Novick,
Case No. 18-20563-CR-Moore
On June 27, 2018, Scott Novick, 50, of Broward County, Florida, was charged by information with one count of conspiracy to dispense and distribute controlled substances. According to the information, Novick was the owner of American Pain Management, a pain management clinic located in Tamarac, Florida. He also owed Pacific Pharmacy, a Miami-area pharmacy. Between July 2016 and March 2018, Novick allegedly engaged in a conspiracy to dispense and distribute Schedule II substances, including oxycodone and morphine.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Trial Attorney Timothy P. Loper.
Agencies involved with the Greater Palm Beach County Health Care Fraud Task Force include the FBI, IRS-CI, DIFS, Amtrak-OIG, DOL-EBSA, OPM-OIG, and NICB.
II. CHECK CASHING FRAUD SCHEMES
11. United States v. Evelio Suarez,
Case No. 18-MJ-2965-Torres
On June 21, 2018, Evelio Suarez, 53, of Miramar, Florida, was charged by criminal complaint with conspiracy to commit money laundering, bribery of a bank employee, and obstruction of justice.
According to allegations contained in the criminal complaint, Suarez controlled three check-cashing stores in Hialeah, Florida, in the name of nominee owners. From 2013 to 2014, Suarez’s check-cashing stores cashed nearly $500 million in checks, which were allegedly primarily funded by healthcare fraud, mortgage fraud, identity theft tax refund fraud, and other fraudulent activity. Suarez allegedly knowingly cashed checks made payable to individuals who were not present at the stores, including individuals whose identities had been stolen or individuals who had been paid to flee to Cuba. Suarez allegedly did not require real identification documents to cash the fraudulent checks and, if necessary, Suarez would make fake identification documents. Suarez allegedly charged a personal fee of approximately ten percent to cash healthcare fraud and mortgage fraud checks and thirty percent for identity theft tax refund fraud checks, on top of the fee charged by the check-cashing stores. On numerous occasions, Suarez allegedly cashed individual fraudulent Medicare checks exceeding $200,000 and individual U.S. Treasury tax refund checks exceeding $150,000.
Mr. Greenberg commends the investigative efforts of IRS-CI and FBI in this matter. The case is being handled by Assistant U.S. Attorney Michael Berger and DOJ Trial Attorney Yisel Valdes.
12. United States v. Enrique Indalecio Iglesias,
Case No. 18-MJ-2973-Torres
On June 22, 2018, Enrique Iglesias, 44, of Homestead, Florida, was charged by criminal complaint with conspiracy to commit money laundering, money laundering, and structuring transactions to avoid reporting requirements justice.
According to allegations contained in the complaint, Iglesias controlled two check-cashing stores in Miami, in the name of nominee owners. From 2013 to 2015, Iglesias’ check-cashing stores cashed nearly $150 million in checks, which were allegedly funded primarily from health-care fraud, mortgage fraud, and other fraudulent activity. Iglesias allegedly did not require the payee on the check to be present and, on many occasions, the actual payee had been paid to flee to Cuba. Iglesias typically charged personal fees between eight to fifteen percent, for allegedly cashing health-care and mortgage-fraud checks. On numerous occasions, Iglesias allegedly cashed fraudulent individual health care fraud checks exceeding $50,000.
Mr. Greenberg commended the investigative efforts of the FBI, HHS-OIG and IRS-CI in this matter. The case is being handled by Assistant U.S. Attorney Michael Berger and DOJ Trial Attorney Yisel Valdes.
III. DRUG AND PHARMACY FRAUD SCHEMES – Medicare Part D
A. TRICARE Fraud
13. United States v. Alap Shah,
Case No. 18-20526-CR-Ungaro
On June 19, 2018, Alap Shah, 44, of Columbus, Georgia, was charged by indictment with one count of conspiracy to defraud the United States and receive health care kickbacks and three counts of receiving health care kickbacks.
According to the indictment, Shah was a State of Georgia licensed podiatrist who allegedly received kickback payments from PGRX, a Weston, Florida based business that recruited and paid doctors to prescribe compounded medications for TRICARE and private commercial insurance beneficiaries. During the course of the conspiracy the defendant and his co-conspirators allegedly signed false Medical Director and Speaker agreements in order to conceal the fact that PGRX was paying the defendant for writing prescriptions. As a result of these prescriptions TRICARE made payments to Atlantic Pharmacy, a pharmacy located in the Southern District of Florida.
Mr. Greenberg commends the investigative efforts of DCIS, U.S. Army Criminal Investigation Command, FDA-Office of Criminal Investigations (FDA-OCI) and USPS-OIG. This case is being prosecuted by Assistant U.S. Attorney Daniel Bernstein.
14. United States v. Christopher Liva, et al.,
Case No. 18-60167-CR-Middlebrooks
On June 14, 2018, Christopher Liva, 39, of Boca Raton, Florida, Elaina Liva, 66, of Pompano Beach, Florida, and Stephen Chalker, 42, of Wellington, Florida, were charged by indictment with one count of conspiracy to commit health care fraud. Chalker was also charged with three counts of health care fraud.
According to the indictment, the Livas were the owners/operators of, and Chalker was the pharmacist in charge at Pop’s Pharmacy, LLC (“Pop’s Pharmacy”), a pharmacy located in Deerfield Beach, Florida. The indictment alleges that from approximately September 2014 to October 2016, the defendants and their co-conspirators caused Pop’s Pharmacy to submit false and fraudulent claims to Medicare, TRICARE, and Medicaid for compounded drugs and other prescription medications, including expensive pain and scar creams, that were not medically necessary and/or were never provided. As a result of these false and fraudulent claims, Medicare, TRICARE, and Medicaid made payments totaling nearly $5 million.
Mr. Greenberg commends the investigative efforts of the FBI, HHS-OIG, DCIS, and the State of Florida Medicaid Fraud Control Unit in this matter. This case is being prosecuted by DOJ Trial Attorney Leslie Wright.
15. United States v. Ryan Long and Billy Burton,
Case. Nos. 18-60144-CR-Dimitrouleas; 18-60164-CR-Dimitrouleas
On May 24, 2018, Ryan Long, 47, of Dunnelon, Florida, was charged by indictment with conspiracy to receive healthcare kickbacks along with six counts of receiving healthcare kickbacks. Billy Burton, 28, of Louisville, Kentucky, was charged by information on June 12, 2018, with causing the misbranding of drugs while held for sale. These charges stem from Long and Burton’s alleged involvement in a $40 million compounding pharmacy fraud scheme, involving TRICARE, spearheaded by Monty Ray Grow, 47, of Tampa, Florida, who was convicted earlier this year in United States v. Monty Ray Grow, Case No. 16-20893-CR-Moreno(s), and recently sentenced to 22 years in prison.
Mr. Greenberg commends the investigative efforts of DCIS, FDA-OCI, and U.S. Army Criminal Investigation Command. This case is being prosecuted by Assistant U.S. Attorney Kevin Larsen.
16. United States v. Asif Uddin and Karl Voeller,
Case Nos. 18-20546-CR-Gayles and 18-20549-CR-Moreno
On June 25, 2018, Asif Uddin, 31, of Kansas City, Missouri, was charged by information with conspiracy to pay and receive healthcare kickbacks in connection with a multi-million dollar fraud scheme purportedly perpetrated on the TRICARE military health benefit program. Uddin, along with Karl Voeller, 33, of Boynton Beach, Florida, who was charged by a separate information on the same date, allegedly conspired with a company based in Miami, Florida to recruit and refer TRICARE beneficiaries to receive prescriptions from pharmacies in Florida and Oklahoma in exchange for kickbacks.
Attorney for the United States Randy A. Hummel commends the investigative efforts of DCIS. These cases are being prosecuted by Assistant U.S. Attorney Kevin J. Larsen.
B. Limited Income Newly Eligible Transition (“LINET”) Program Fraud
According to the criminal charges, filed in the following cases, the defendants allegedly defrauded the Limited Income Newly Eligible Transition (“LINET”) Program of Medicare Part D. The LINET Program exists to ensure that certain low-income individuals who are newly eligible for Medicare benefits receive immediate Part D coverage until they are enrolled in a traditional Medicare Part D prescription drug plan.
17. United States v. Orelbis Gonzalez,
Case No. 18-20477-CR-Gayles
On June 5, 2018, Orelbis Gonzalez, 32, of Miami, Florida, was charged by indictment with conspiracy to commit health care fraud, four counts of health care fraud, conspiracy to commit money laundering and four counts of money laundering.
According to the indictment, the defendant targeted the LINET program of Medicare Part D. Gonzalez was the president and registered agent of Universal Pharmacy Group Inc. (“Universal Pharmacy”), a Miami pharmacy that purportedly provided prescription drugs to Medicare beneficiaries. From June 2015 through September 2015, the defendant submitted and caused the submission of approximately $411,760 in claims for reimbursement to the Medicare Part D program, via interstate wires, that falsely and fraudulently represented that various health care benefits, primarily prescription drugs, were medically necessary, prescribed by a doctor, and had been provided by Universal Pharmacy. As a result of such false and fraudulent claims, Medicare prescription drug plan sponsors made payments funded by the Medicare Part D Program to the corporate bank accounts of Universal Pharmacy in the approximate amount of $354,979.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Christopher J. Clark.
18. United States v. Dalia Hernandez,
Case No. 18-20474-CR-Altonaga
On June 5, 2018, Dalia Hernandez, 50, of Miami, Florida, was charged by indictment with conspiracy to commit health care fraud and three counts of health care fraud. According to the indictment, the defendant targeted the LINET program of Medicare Part D. Hernandez was the president and registered agent of AAP Pharmacy in Miami Springs, a pharmacy that purportedly provided prescription drugs to Medicare beneficiaries. From April 2014 through July 2014, the defendant submitted and caused the submission of approximately $1,267,368 in claims for reimbursement to the Medicare Part D program, via interstate wires, that falsely and fraudulently represented that various health care benefits, primarily prescription drugs, were medically necessary, prescribed by a doctor, and had been provided by AAP Pharmacy. As a result of such false and fraudulent claims, Medicare prescription drug plan sponsors made payments funded by the Medicare Part D Program to the corporate bank accounts of AAP Pharmacy in the approximate amount of $322,331.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Christopher J. Clark.
19. United States v. Georvanys Rodriguez Pineda,
Case No. 18-20428-CR-Cooke
On May 22, 2018, Georvanys Rodriguez Pineda, 43, of Miami, Florida, was charged by indictment with conspiracy to commit health care fraud and four counts of health care fraud.
According to the indictment, the defendant targeted the LINET program of Medicare Part D. Pineda was the president and registered agent of Urantia Pharmacy Inc., a Miami pharmacy that purportedly provided prescription drugs to Medicare beneficiaries. From June 2015 through November 2015, the defendant submitted and caused the submission of approximately $1,111,820 in claims for reimbursement to the Medicare Part D program, via interstate wires, that falsely and fraudulently represented that various health care benefits, primarily prescription drugs, were medically necessary, prescribed by a doctor, and had been provided by Urantia Pharmacy. As a result of such false and fraudulent claims, Medicare prescription drug plan sponsors made payments funded by the Medicare Part D Program to the corporate bank accounts of Urantia Pharmacy in the approximate amount of $310,490.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Christopher J. Clark.
20. United States v. Alexander Sarduy Fuentes, et al.,
Case No. 18-20475-CR-Moreno
On June 5, 2018, Alexander Sarduy Fuentes, 47, and Jorge Victor O’Reilly, 56, both of Miami, Florida, were charged by indictment with conspiracy to commit health care fraud and six counts of health care fraud.
Fuentes owned Hello Pharmacy & Discount Inc. (“Hello Pharmacy”), a Miami Gardens pharmacy that purportedly provided prescription drugs to Medicare beneficiaries. O’Reilly owned @ All Pharmacy & Supplies LLC (“All Pharmacy”), a Miami pharmacy that purportedly provided prescription drugs to Medicare beneficiaries. Fuentes, O’Reilly, and others conspired to fraudulently bill the LINET program. From August 2015 through October 2015, the defendants submitted and caused the submission of approximately $539,711 in claims for reimbursement to the Medicare Part D program, via interstate wires, that falsely and fraudulently represented that various health care benefits, primarily prescription drugs, were medically necessary, prescribed by a doctor, and had been provided by All Pharmacy. As a result of such false and fraudulent claims, Medicare prescription drug plan sponsors made payments funded by the Medicare Part D Program to the corporate bank accounts of All Pharmacy in the approximate amount of $539,711. From August 2015 through October 2015, the defendants submitted and caused the submission of approximately $346,095 in claims for reimbursement to the Medicare Part D program, via interstate wires, that falsely and fraudulently represented that various health care benefits, primarily prescription drugs, were medically necessary, prescribed by a doctor, and had been provided by Hello Pharmacy. As a result of such false and fraudulent claims, Medicare prescription drug plan sponsors made payments funded by the Medicare Part D Program to the corporate bank accounts of Hello Pharmacy in the approximate amount of $274,052.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Christopher J. Clark.
C. Additional Pharmacy Fraud Schemes
21. United States v. Antonio Perez, Jr.,
Case No. 18-20528-CR-Moreno
On June 25, 2018, Antonio Perez, Jr., 48, of Miami Beach, Florida, was charged by indictment with one count of conspiracy to commit health care fraud and wire fraud, four counts of health care fraud, one count of conspiracy to commit money laundering and two counts of money laundering.
According to the indictment, Perez owned a Miami-area pharmacy called ARA Medical Services Inc., which did business under the name Valles Pharmacy. Between January 2011 and August 2017, Perez allegedly engaged in a conspiracy and scheme to defraud Part D of the Medicare program by causing Valles Pharmacy to be paid approximately $8 million in claims for prescription medications that were not medically necessary, not eligible for reimbursement, and were not provided. As alleged in the indictment, Perez and his co-conspirators carried out the fraudulent scheme by, among other things, paying kickbacks to beneficiaries in exchange for access to their identifying information, which Valles Pharmacy used to submit false and fraudulent claims to Medicare.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Trial Attorney Timothy P. Loper.
22. United States v. Maria E. Inda and Ileana Rodriguez,
Case No. 18-20453-CR-Ungaro
On May 31, 2018, Maria E. Inda, 65, and Ileana Rodriguez, 45, both of Miami, Florida, were charged by indictment with conspiracy to commit health care fraud and wire fraud and eight counts of health care fraud. Rodriguez was also charged with two counts of money laundering.
According to the indictment, the defendants defrauded the Medicare Part D prescription drug program through two Miami pharmacies. Inda was the president and registered agent of Caribbean Pharmacy Inc. (“Caribbean”), a retail pharmacy that purportedly provided prescription drugs to Medicare beneficiaries. Rodriguez was a pharmacy technician at Caribbean. Later, Rodriguez opened Aqua Pharma Inc. (“Aqua”), a retail pharmacy she controlled with Inda. From May 2009 through September 2016, the defendants allegedly submitted and caused the submission of fraudulent claims for reimbursement to the Medicare Part D program, via interstate wires, that falsely and fraudulently represented that prescription drugs were medically necessary and had been provided by Caribbean and Aqua. The scheme operated through the payment of kickbacks to patient recruiters in exchange for the referral of fraudulent prescriptions. As a result of the fraudulent claims, Medicare prescription drug plan sponsors made payments funded by the Medicare Part D Program to Caribbean and Aqua pharmacies in the approximate amount of $6.8 million. The indictment further charges Rodriguez with money laundering based on her purchase of a home and Mercedes Benz, allegedly with proceeds of the Medicare fraud scheme.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Jon Juenger.
23. United States v. Ascanio Serna,
Case No. 18-20561-CR-Altonaga
On June 27, 2018, Ascanio Serna, formerly a co-owner of A.S.C. Pharmacy, Inc. ("ASC"), a now-defunct Miami pharmacy, was charged by information with one count of conspiracy to commit health care fraud for his role in a $3.6 million compounding scheme at ASC. As alleged in the information, ASC formulated compounded medications without regard to medical necessity, but rather to maximize profits by increasing the amount that ASC could bill to insurance companies for reimbursement of the specific combinations of ingredients in each compounded cream. To obtain prescriptions for its compounded formulas, ASC paid kickbacks and bribes to marketers and doctors, and waived co-pays to patients.
Mr. Greenberg commends the investigative efforts of HHS-OIG, FBI and DCIS. This case is being prosecuted by DOJ Trial Attorney David Snider.
24. United States v. David Espinosa, Sandy Basulto and Aracelis Basilia Lopez,
Case No. 18-20435-CR-Middlebrooks
On May 24, 2018, David Espinosa, 61, Sandy Basulto, 34, and Aracelis Lopez, 59, all of Miami, Florida, were charged by indictment with conspiracy to commit health care fraud and wire fraud and eight counts of health care fraud.
According to the indictment, the defendants defrauded the Medicare Part D prescription drug program through Ultra Pharmacy Discount Corp. (“Ultra Pharmacy”), a retail pharmacy located in Miami. Espinosa was the president and registered agent of Ultra Pharmacy, while Basulto and Lopez served as licensed pharmacy technicians. From March 2013 through February 2015 the defendants allegedly submitted and caused the submission of fraudulent claims for reimbursement to the Medicare Part D program, via interstate wires, that falsely and fraudulently represented that prescription drugs were medically necessary and had been provided by Ultra Pharmacy. The indictment also alleges that the scheme involved payment of kickbacks to patient recruiters in exchange for the referral of fraudulent prescriptions. As a result of such false and fraudulent claims, Medicare prescription drug plan sponsors made payments funded by the Medicare Part D Program to Ultra Pharmacy in the approximate amount of $2.4 million.
Mr. Greenberg commends the investigative efforts of the HHS-OIG, FBI, and U.S. Customs and Border Protection (CBP) Air and Marine. This case is being prosecuted by Assistant U.S. Attorney Jon Juenger.
25. United States v. Carlos Garcia, Heidy Garcia and Gisell Aberasturia,
Case No. 18-20514-CR-Moore
On June 14, 2018, Carlos Garcia, 51, of Lake Worth, Florida and Heidy Garcia, 24, and Gisell Aberastria, 52, both of Miami, Florida, were charged by indictment with conspiracy to commit health care fraud and wire fraud and nine counts of health care fraud.
According to the indictment, the defendants defrauded the Medicare Part D prescription drug program through retail pharmacies Capital Drugs in Miami, Green Hope Pharmacy in Miami and American Drugs Pharmacy in Lake Worth. Garcia was the president and registered agent of Capital Drugs and a beneficial owner of Green Hope Pharmacy and American Drugs, while Aberasturia was the president and registered agent for Green Hope Pharmacy. Garcia served as a licensed pharmacy technician at Capital Drugs, Green Hope Pharmacy and American Drugs Pharmacy. From March 2013 through June 2018 the defendants allegedly submitted and caused the submission of fraudulent claims for reimbursement to the Medicare Part D program, via interstate wires, that falsely and fraudulently represented that prescription drugs were medically necessary and had been provided by Capital Drugs, Green Hope and American Drugs. The indictment also alleges that the scheme involved payment of kickbacks to patient recruiters in exchange for the referral of fraudulent prescriptions. As a result of such false and fraudulent claims, Medicare prescription drug plan sponsors made payments funded by the Medicare Part D Program to Capital Drugs, Green Hope Pharmacy and American Drugs Pharmacy in the approximate amount of $2.5 million.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Jon Juenger.
26. United States v. Gregory Sanchez,
Case No. 18-20513-CR-Ungaro
On June 14, 2018, Gregory Sanchez, 43, of Miami, Florida, a co-owner of Med Health Equipment, LLC (“Med Health”), a now-defunct Miami pharmacy, was charged by indictment with one count of conspiracy to commit health care fraud, six counts of health care fraud, one count of conspiracy to commit money laundering, and six counts of money laundering, for his alleged role in a scheme that caused Part D of the Medicare program to pay Med Health $2.5 million for prescription drugs that the pharmacy never actually purchased or provided to Medicare beneficiaries. As alleged in the indictment, Sanchez and his co-conspirators carried out the fraudulent scheme by, among other things, paying kickbacks to patient recruiters in exchange for Medicare beneficiaries’ identifying information, which Med Health used to submit false and fraudulent claims to Medicare. To generate the cash needed to pay the patient recruiters, Sanchez allegedly laundered the proceeds of the fraud by cashing checks disguised as compensation.
Mr. Greenberg commends the investigative efforts of HHS-OIG and FBI. This case is being prosecuted by DOJ Trial Attorney David Snider.
27. United States v. Arturo Paez Martinez,
Case No. 18-20545-CR-Scola
On June 25, 2018, Arturo Paez Martinez, 65, of Miami, Florida, was charged by information with one count of conspiracy to commit health care fraud and wire fraud and four counts of health care fraud.
According to the information, Martinez owned a Miami-area pharmacy called Versalles Pharmacy. Between March 2014 and June 2015, Perez allegedly engaged in a conspiracy and scheme to defraud Part D of the Medicare program by causing Versalles Pharmacy to be paid approximately $1.2 million in claims for prescription medications that were not medically necessary, not eligible for reimbursement, and not provided. As alleged in the indictment, Martinez and his co-conspirators carried out the fraudulent scheme by, among other things, paying kickbacks to patient recruiters in exchange for Medicare beneficiaries’ identifying information, which Versalles Pharmacy used to submit false and fraudulent claims to Medicare.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Trial Attorney Timothy P. Loper.
28. United States v. Augustine Oranusi and Daylet Martinez,
Case No. 18-20527-CR-Ungaro
On June 19, 2018, Augustine Oranusi, 52, and Daylet Martinez, 35, both of Miami, Florida, were charged by indictment with one count of conspiracy to commit health care fraud and wire fraud, five counts of health care fraud, and conspiracy to commit money laundering.
According to the indictment, Oranusi was a pharmacist and Martinez was a pharmacy technician, and together they owned a Miami-area pharmacy called Evergreen Pharmacy. Between March 2013 and October 2016, Oranusi and Martinez engaged in a conspiracy and scheme to defraud Part D of the Medicare program by causing Evergreen Pharmacy to be paid approximately $1.6 million in claims for prescription medications that were never actually purchased or provided to Medicare beneficiaries. As alleged in the indictment, Oranusi, Martinez, and their co-conspirators carried out the fraudulent scheme by, among other things, paying kickbacks to patient recruiters in exchange for Medicare beneficiaries’ identifying information, which Evergreen Pharmacy used to submit false and fraudulent claims to Medicare.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Trial Attorney Timothy P. Loper.
29. United States v. Alian Miranda,
Case No. 18-20434-CR-Williams
On May 24, 2018, Alian Miranda, 30, of Miami, Florida, was charged by indictment with conspiracy to commit health care fraud and wire fraud and nine counts of health care fraud.
According to the indictment, the defendant defrauded the Medicare Part D prescription drug program through Rodriguez Pharmacy Corp (“Rodriguez Pharmacy”), a retail pharmacy owned by Miranda and located in Miami, Florida. From October 2014 through July 2017 the defendant allegedly submitted and caused the submission of fraudulent claims for reimbursement to the Medicare Part D program, via interstate wires, that falsely and fraudulently represented that prescription drugs were medically necessary and had been provided by Rodriguez Pharmacy. The indictment also alleges that the scheme involved payment of kickbacks to Medicare beneficiaries and other co-conspirators in exchange for the referral of fraudulent prescriptions. As a result of such false and fraudulent claims, Medicare prescription drug plan sponsors made payments funded by the Medicare Part D Program to Rodriguez Pharmacy in the approximate amount of $1.3 million.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Jon Juenger.
30. United States v. Oscar Guardarrama, Sandy Basulto and Noemi Delgado,
Case No. 18-20508-CR-Altonaga
On June 14, 2018, Oscar Guardarrama, 62, Sandy Basulto, 34, and Noemi Delgado, 27, all of Miami, Florida, were charged by indictment with conspiracy to commit health care fraud and wire fraud and eleven counts of health care fraud.
According to the indictment, the defendants defrauded the Medicare Part D prescription drug program through Antares Pharmacy Discount Corp. (“Antares Pharmacy”), a retail pharmacy located in Miami. Guardarrama was the president and registered agent of Antares Pharmacy, while Basulto and Delgado served as licensed pharmacy technicians. From February 2014 through June 2018 the defendants allegedly submitted and caused the submission of fraudulent claims for reimbursement to the Medicare Part D program, via interstate wires, that falsely and fraudulently represented that prescription drugs were medically necessary and had been provided by Antares Pharmacy. The indictment also alleges that the scheme involved payment of kickbacks to patient recruiters, including Delgado, in exchange for the referral of fraudulent prescriptions. As a result of such false and fraudulent claims, Medicare prescription drug plan sponsors made payments funded by the Medicare Part D Program to Antares Pharmacy in the approximate amount of $1.7 million.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Jon Juenger.
31. United States v. Nieves Suarez, et al.,
Case No. 18-20175-CR-Cooke(s)
On June 12, 2018, Nieves Suarez, 48, Arlety Guerra Prieto, 45, and Mariela Quintana, 49, all of Miami, Florida, were charged by indictment with conspiracy to commit health care fraud and four counts of health care fraud.
According to the indictment, Suarez was the president and registered agent of Golden Owl Pharmacy & Discount Corp. (“Golden Owl Pharmacy”), a Miami pharmacy that purportedly provided prescription drugs to Medicare beneficiaries, from January 3, 2011 to November 30, 2012, and secretary from November 30, 2012, to on or about March 10, 2015. Prieto was president and registered agent of Golden Owl Pharmacy from November 30, 2012, until the dissolution of the corporation on September 25, 2015. Quintana was a co-owner of Golden Owl Pharmacy. From October 2012 through March 2015, the defendants submitted and caused the submission of approximately $915,784 in claims for reimbursement to the Medicare Part D program, via interstate wires, that falsely and fraudulently represented that various health care benefits, primarily prescription drugs, were medically necessary, prescribed by a doctor, and had been provided by Golden Owl Pharmacy. As a result of such false and fraudulent claims, Medicare prescription drug plan sponsors made payments funded by the Medicare Part D Program to the corporate bank accounts of Golden Owl Pharmacy in the approximate amount of $915,784.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Christopher J. Clark.
32. United States v. Raiza Del Carmen De Leon and Julio Cesar De Leon,
Case No. 18-20436-CR-Scola
On May 24, 2018, Raiza Del Carmen De Leon, 38, and Julio Cesar De Leon, 42, a husband and wife of Miami Springs, Florida, were charged by indictment with conspiracy to commit health care fraud and wire fraud and eight counts of health care fraud.
According to the indictment, the defendants defrauded the Medicare Part D prescription drug program through Miramar Pharmacy and Discount Inc. (“Miramar Pharmacy”), a retail pharmacy co-owned by the De Leons and located in Miramar, Florida. From October 2014 through November 2015 the defendants submitted and caused the submission of fraudulent claims for reimbursement to the Medicare Part D program, via interstate wires, that falsely and fraudulently represented that prescription drugs were medically necessary and had been provided by Miramar Pharmacy. The indictment also alleges that the scheme involved payment of kickbacks to patient recruiters in exchange for the referral of fraudulent prescriptions. As a result of such false and fraudulent claims, Medicare prescription drug plan sponsors made payments funded by the Medicare Part D Program to Miramar Pharmacy in the approximate amount of $700,000.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Jon Juenger.
33. United States v. Yordanka Pedroso,
Case No. 18-20451-CR-Scola
On May 31, 2018, Yordanka Pedroso, 41, of Miami, Florida, was indicted on one count of conspiracy to defraud the United States and pay and receive healthcare kickbacks.
According to the indictment, Pedroso allegedly participated in the fraudulent scheme by agreeing with the owners and operators of pharmacies to receive kickbacks and bribes in exchange for providing her own personal Medicare information, as well as the personal information of a co-conspirator Medicare beneficiary who she recruited. The pharmacies then allegedly used this information to bill Medicare for medical items and services that were medically unnecessary, not provided to the defendant and her co-conspirator, and never purchased. The defendant also paid her co-conspirator Medicare beneficiary kickbacks and bribes. As a result of Pedroso’s participation in the scheme, Medicare paid approximately $134,799 to the pharmacies.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Trial Attorney Yisel Valdes.
34. United States v. Ricardo Vento,
Case No. 18-CR-20559-Williams
On June 27, 2018, Ricardo Vento, 71, of Miami, Florida, was charged by information with one count of soliciting and receiving illegal health care bribes and kickbacks in connection with a federal health care program. The information alleges Vento received approximately $16,200 in kickbacks. In total, Medicare paid more than $95,000 but less than $150,000 for services purportedly provided to the Medicare beneficiaries referred by Vento.
Mr. Greenberg commends the investigative efforts of the FBI, HHS-OIG and USSS. This case is being prosecuted by DOJ Trial Attorney Adam G. Yoffie.
35. United States v. Alexandria Suhanov,
Case No. 18-20560-CR-Martinez
On June 27, 2018, Alexandria Suhanov, 37, of Cornelius, North Carolina, was charged by information with one count of conspiracy to commit health care fraud. According to the information, Suhanov was the receptionist of American Pain Management, a pain management clinic located in Tamarac, Florida. She later worked at Pacific Pharmacy, a Miami-area pharmacy. Both American Pain Management and Pacific Pharmacy were owned by Scott Novick, who was simultaneously charged by separate information with one count of conspiracy to dispense and distribute controlled substances (Case No. 18-20563-CR-Moore). According to the information filed against Suhanov, between January 2009 through April 2018, American Pain Management and Pacific Pharmacy submitted false and fraudulent claims to Medicare, including claims for controlled substances and office visits that lacked any legitimate medical necessity. American Pain Management submitted approximately $785,420 in claims to Medicare, and Pacific Pharmacy submitted approximately $1,035,969 in claims to Medicare.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Trial Attorney Timothy P. Loper.
IV. HOME HEALTH CARE FRAUD – Medicare Part A
36. United States v. Berto Arias Carrasco,
Case No. 18-20558-CR-Moreno
On June 27, 2018, Berto Arias Carrasco, 55, of Pembroke Pines, Florida, was charged by information with one count of conspiracy to commit health care fraud. The charge arises from Arias Carrasco’s role as the nominee owner and operator of a Miami home health care agency, New Life Home HealthCare Inc. (“New Life”).
The information alleges that Arias Carrasco falsely represented himself as the true owner of New Life, which was in fact owned by a co-conspirator. It further alleges that Arias Carrasco and a co-conspirator paid kickbacks to patient recruiters in exchange for referring Medicare beneficiaries, many of whom did not qualify for or need home health services, to New Life, and that Arias Carrasco and a co-conspirator issued checks to be cashed in order to pay kickbacks. As a result of this scheme, Medicare paid over $15 million in false and fraudulent claims.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Trial Attorney Leslie Wright. Maryland Assistant U.S. Attorney Jessica Collins, formerly of the Fraud Section, assisted in charging this case.
37. United States v. Maricela P. Chavez et al.,
Case No. 18-20501-CR-Altonaga
On June 12, 2018, Maricela P. Chavez, 57, of Miami, Florida, Rene Guerra, 57, of Miami Beach, Florida, Esther Aguilera Escalona, 60, of Miami, Florida, Ricardo Fajardo, a/k/a “Evelyn Tiffany,” 63, of Miami, Florida, Yurisday Hernandez, 45, of Miami, Florida, and Arelys Perez Cuesta, 50, of Hialeah, Florida, were charged by indictment with conspiracy to commit health care fraud, conspiracy to defraud the U.S. and pay and receive healthcare kickbacks and payment of kickbacks in connection with a federal health care program. Guerra was also charged with conspiracy to commit health care fraud and conspiracy to defraud the U.S. and pay and receive healthcare kickbacks.
According to the indictment, the defendants participated in a scheme to defraud Medicare using their connections to ACM Home Health Corp., located in Miami, and TC Home Health Care, Inc., located in Hialeah, home health agencies. The indictment alleges that Guerra was the registered owner of TC Home Health Care, Inc., while Chavez was the operator of, and Escalona, Fajardo, Hernandez, and Cuesta were patient recruiters for, ACM Home Health Corp. and TC Home Health Care, Inc.
The defendants allegedly conspired to defraud Part A of the Medicare program of $14 million by billing for home health services that were not rendered and paying kickbacks to patient recruiters and patients in exchange for patient referrals.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. Assistant U.S. Attorney Miesha Shonta Darrough is prosecuting this case.
38. United States v. Alexander Ros Lazo and Misleidy Ibarra,
Case No. 18-CR-20536-Martinez
On June 21, 2018, Alexander Ros Lazo, 53, of Homestead, Florida, an owner and operator of T.L.C. Health Services, Inc. (“T.L.C.”), a home health agency in Miami-Dade County, and Misleidy Ibarra, 45, of Homestead, Florida, a licensed massage therapist, were indicted on one count of conspiracy to commit health care fraud and wire fraud. Misleidy Ibarra was also indicted on three counts of health care fraud. Ros Lazo was also indicted on four counts of health care fraud, one count of conspiracy to defraud the United States and pay and receive health care kickbacks, and two counts of payment of bribes and kickbacks in connection with a federal health care program.
The charges stem from Ros Lazo’s alleged role in a fraud scheme where he paid kickbacks and bribes to his co-conspirators in exchange for home health services prescriptions and the referral of Medicare beneficiaries to T.L.C. Ros Lazo and Ibarra also agreed with their co-conspirators to commit health care fraud by arranging for Ibarra to render physical and occupational therapy services to Medicare beneficiaries when Ibarra was not licensed to provide these services. As a result of the defendants’ role in the fraudulent scheme, Medicare paid approximately $8.6 million to T.L.C.
Mr. Greenberg commends the investigative efforts of FBI and HHS-OIG and U.S. Customs and Border Protection (CBP) Air and Marine. The case is being handled by DOJ Trial Attorney Yisel Valdes.
39. United States v. Evelio Ramirez and Rossana P. Ramirez,
Case No. 18-20534-CR-Cooke
On June 21, 2018, Evelio Ramirez, 58, and Rossana P. Ramirez, 58, both of Miami, Florida, were charged by information with conspiracy to commit health care fraud. The charge stems from their alleged roles at F&E Home Health Care, Inc., a home health agency in Miami that defrauded Part A of the Medicare program of $7.1 million and Medicaid of $368,972 by billing for home health services that were not provided to Medicare and Medicaid beneficiaries and paying kickbacks to patient recruiters in exchange for patient referrals.
Mr. Greenberg commends the investigative efforts of the FBI, HHS-OIG and the State of Florida Medicaid Fraud Control Unit. Assistant U.S. Attorney Miesha Shonta Darrough is prosecuting this case.
40. United States v. Nelson Anzardo Calzadilla, et al.,
Case No. 18-20512-CR-Martinez
On June 14, 2018, Nelson Anzardo Calzadilla, 55, and Milena Gonzalez, 53, both of Miami, were charged by indictment in connection with their alleged roles in a home health care fraud and kickback scheme involving numerous Miami-area home health agencies. Calzadilla was charged with one count of conspiracy to commit health care fraud and wire fraud and one count of conspiracy to defraud the United States and to pay and receive health care kickbacks. Gonzalez was charged with one count of conspiracy to defraud the United States and to pay and receive health care kickbacks and three counts of receiving health care kickbacks.
The indictment alleges that Calzadilla, who owned three home health agencies, concealed the ownership interest of his co-owner, paid kickbacks to patient recruiters in return for referring Medicare beneficiaries, and caused the submission of false and fraudulent claims for services that were not medically necessary, not rendered, and procured through kickbacks and bribes. The indictment alleges that Gonzalez referred Medicare beneficiaries to various Miami-area home health agencies in exchange for kickbacks and that she paid kickbacks to the owners and operators of a Miami-area medical clinic in order to purchase home health therapy prescriptions. The indictment further alleges that, as a result of false and fraudulent claims submitted as part of the charged conspiracy to commit health care fraud and wire fraud, Medicare made payments of at least $6.1 million.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Trial Attorney Leslie Wright. Maryland Assistant U.S. Attorney Jessica Collins, formerly of the Fraud Section, assisted in charging this case.
41. United States v. Margarita Palomino, et al.,
Case No. 18-20487-CR-Martinez
On June 7, 2018, Margarita Palomino, 54, of Homestead, Florida, and Norma Zayas, 29, of Miami, Florida, were indicted in connection with their alleged roles in several home health care fraud and kickback schemes involving at least six Miami-area home health agencies, which fraudulently billed Medicare for claims that were not necessary, for services not rendered, and for claims procured through kickbacks and bribes.
Palomino and Zayas were charged with conspiracy to commit health care fraud and wire fraud, arising from their involvement with several home health agencies, including Sunshine Home Health Care Services, Inc., Empire Home Health Agency, Inc., and Mildred & Marce Home Hea1th Care Services, Inc. The indictment alleges that, as a result of false and fraudulent claims submitted as part of this conspiracy, Medicare made payments of at least $4.65 million.
Palomino was also charged with one count of conspiracy to commit health care fraud and wire fraud, one count of conspiracy to defraud the United States and to pay and receive health care kickbacks, and two counts of making false statements relating to health care matters arising from her conduct involving Summer Health Care, Inc. and Excellent Home Health Care, Inc. The indictment further alleges that, as a result of this health care and wire fraud conspiracy, Medicare made payments of at least $1.89 million.
Finally, Zayas was also charged with one count of conspiracy to defraud the United States and to pay and receive health care kickbacks and two counts of paying health care kickbacks arising from her involvement with Nursing Care PRN, Inc. As a result of this kickback conspiracy, the indictment alleges that Medicare paid Nursing Care PRN, Inc. at least approximately $1.12 million.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Trial Attorney Leslie Wright. Maryland Assistant U.S. Attorney Jessica Collins, formerly of the Fraud Section, assisted in charging this case.
42. United States v. Daymi Arias Bofill,
Case No. 18-20562-CR-Cooke
On June 27, 2018, Daymi Arias Bofill, 41, of Miami, Florida, was charged by information with one count of conspiracy to commit health care fraud. The charge arises from Arias Bofill’s role as an operator of New Life Home HealthCare Inc. (“New Life Home Health”), Empire Home Health Agency, Inc. (“Empire Home Health”), City of Angels Home Health Care, LLC (“City of Angels Home Health”), and Miami-Dade Home Health Care Inc. (“Miami-Dade Home Health”). The information alleges that Arias Bofill falsely and fraudulently represented herself as the owner of City of Angels Home Health and Miami-Dade Home Health, which in fact were owned by a co-conspirator. The information further alleges that Arias Bofill and a co-conspirator paid kickbacks to patient recruiters in return for the referral of Medicare beneficiaries, many of whom did not qualify for or need home health services, to New Life Home Health, Empire Home Health, City of Angels Home Health, and Miami-Dade Home Health. As a result of false and fraudulent claims submitted in connection with the scheme, Medicare made payments totaling over $4.6 million.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Trial Attorney Leslie Wright. Maryland Assistant U.S. Attorney Jessica Collins, formerly of the Fraud Section, assisted in charging this case.
43. United States v. Liannelys Gonzalez,
Case No. 18-20450-CR-Moore
On May 31, 2018, Liannelys Gonzalez, 28, of Miami, Florida, was charged by indictment with conspiracy to commit health care fraud and wire fraud and ten counts of health care fraud. According to the indictment, Gonzalez was the owner of Exclusive Home Care, Inc. (“Exclusive”). The indictment alleges that Gonzalez and her co-conspirators submitted claims to Medicare via interstate wire transfers which fraudulently and falsely represented that home health care services were medically necessary, prescribed by a doctor, and provided to Medicare beneficiaries when, in fact, they were not medically necessary and not provided. As a result of these false and fraudulent claims, Medicare made approximately $4,460,679 in payments to Exclusive.
Mr. Greenberg commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Trial Attorney James V. Hayes, formerly an Assistant U.S. Attorney in the Southern District of Florida.
44. United States v. Juliette Anais Tamayo,
Case No. 18-20535-CR-Altonaga
On June 21, 2018, Juliette Anais Tamayo, 53 of Miami, Florida, was charged by indictment with one count of conspiracy to pay and receive illegal health care bribes and kickbacks in connection with a federal health care program, one count of conspiracy to commit health care fraud, and two counts of health care fraud. The indictment charges Tamayo with participating in a conspiracy that allegedly caused a loss of approximately $3.6 million to the Medicare program. The charges arise from Tamayo’s ownership of Sunshine Medical Care Group, Inc., which submitted claims to Medicare for services that did not occur, and unlawfully sold prescriptions for medically unnecessary home health services.
Mr. Greenberg commends the investigative efforts of the FBI, HHS-OIG and USSS. This case is being prosecuted by DOJ Trial Attorneys Drew Bradylyons and Adam G. Yoffie.
45. United States v. Gilberto Hernandez,
Case No. 18-20488-CR-Gayles
On June 7, 2018, Gilberto Hernandez, 43, of Miami, Florida, was charged by indictment with three counts of health care fraud. According to the indictment, Hernandez was the owner of Advance Home Care Services, Inc. (“Advance”). The indictment alleges that Hernandez submitted claims to Medicare which fraudulently and falsely represented that home health care services were medically necessary, prescribed by a doctor, and provided to Medicare beneficiaries when, in fact, they were not medically necessary and not provided. As a result of these false and fraudulent claims, Medicare made approximately $3,386,162 in payments to Advance.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted DOJ Trial Attorney James V. Hayes, formerly an Assistant U.S. Attorney in the Southern District of Florida.
46. United States v. Jaqueline Monteserin, et al.,
Case No. 18-20537-CR-Martinez
On June 21, 2018, Jaqueline Monteserin, 45, of Homestead, Florida, and Cela Loaces Hernandez, 54, and Alejandro Fernandez, 47, both of Miami, Florida, were charged by indictment with one count of conspiracy to commit health care fraud and wire fraud, one count of conspiracy to defraud the United States and pay and receive health care kickbacks, and two counts each of receiving health care kickbacks. The charges stem from the defendants’ involvement with D&Y Pharmacy Discount, Corp. (“D&Y Pharmacy”) and Florida Pharmacy, Inc. (“Florida Pharmacy”), which fraudulently billed Medicare for prescription drugs that were medically unnecessary, not eligible for reimbursement, and never provided.
The indictment alleges that from approximately February 2014 to July 2016, the defendants accepted kickbacks in return for referring Medicare beneficiaries to D&Y Pharmacy and Florida Pharmacy to serve as patients. The indictment further alleges that the defendants provided fraudulent prescriptions obtained from medical clinics, including two clinics operated by Monteserin and Loaces – Double R Therapy Center, Inc. (“Double R”) and Mediglez Wellness Center, Inc. (“Mediglez”) – for the recruited beneficiaries.
The indictment also charges Monteserin and Loaces with an additional count of conspiracy to commit health care fraud and wire fraud, based on their roles in a home health care fraud scheme. The indictment alleges that from approximately December 2014 to June 2015, Monteserin and Loaces accepted kickbacks in return for home health prescriptions from Double R and Mediglez for Medicare beneficiaries, many of whom did not need or qualify for home health services. The indictment further alleges that Monteserin and Loaces accepted kickbacks in return for referring Medicare beneficiaries to D&D&D Home Health Care, Inc. (“D&D&D”) to serve as patients, and that they provided falsified prescriptions for the beneficiaries they referred to D&D&D. According to the indictment, as a result of false and fraudulent claims submitted by D&D&D and other Miami-area home health agencies in connection with the scheme, Medicare made payments of at least $3.2 million.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Trial Attorney Leslie Wright. Maryland Assistant U.S. Attorney Jessica Collins, formerly of the Fraud Section, assisted in charging the case.
47. United States v. Israel Rodriguez Medina,
Case No. 18-20551-CR-Scola
On June 26, 2018, Israel Rodriguez Medina, 40, of Miami, Florida, the owner of First RN, Inc., a home health agency located in Miami, was charged by indictment with one count of conspiracy to commit health care fraud and three counts of health care fraud for his alleged role in a $1.6 million scheme. The charges arise from his ownership of First RN, which billed Medicare for home health services that were not medically necessary and/or not provided to Medicare beneficiaries.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. The case is being prosecuted by Assistant U.S. Attorney Karen Stewart and DOJ Trial Attorney Adam Yoffie.
48. United States v. Tania Gudin,
Case No. 18-20505-CR-Moore
On June 12, 2018, Tania Gudin, 54, of Miami, Florida, was charged by indictment with one count of conspiracy to commit health care fraud, one count of conspiracy to defraud the United States and pay and receive health care kickbacks, and five counts of receiving health care kickbacks. The indictment alleges that from approximately July 2011 to November 2014, Gudin accepted kickbacks in return for referring Medicare beneficiaries to various Miami-area home health agencies to serve as patients. The indictment further alleges that Gudin and her co-conspirators caused the submission of false and fraudulent claims to Medicare for home health services purportedly provided to the recruited beneficiaries, as a result of which Medicare made payments of at least $1.36 million.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Trial Attorney Leslie Wright. Maryland Assistant U.S. Attorney Jessica Collins, formerly of the Fraud Section, assisted in charging this case.
49. United States v. Niurka Herrera,
Case No. 18-20539-CR-Moore
On June 21, 2018, Niurka Herrera, 49, of Hialeah, Florida, a patient recruiter was indicted on one count of conspiracy to defraud the United States and pay and receive healthcare kickbacks, and three counts of receipt of kickbacks in connection with a federal health care program. The charges stem from the defendant’s alleged role in a scheme where she agreed with her co-conspirators to pay and receive kickbacks and bribes in exchange for referring Medicare beneficiaries to home health agencies and a medical clinic. As a result of the defendant’s role in the scheme, Medicare paid approximately $153,772.28 to various home health agencies.
Mr. Greenberg commends the investigative efforts of FBI and HHS-OIG. The case is being handled by DOJ Trial Attorney Yisel Valdes.
50. United States v. Rosa Maria Baez,
Case No. 18-20428-CR-Ungaro
On May 22, 2018, Rosa Maria Baez, 44, of Hialeah, Florida, the owner of home health agency Eternity Life Health Care, Inc., in Miami Lakes, was charged by indictment with conspiracy to defraud the United States and pay health care kickbacks and payment of kickbacks in connection with a federal health care program. The charges stem from her involvement in a home health fraud scheme involving kickback payments to patient recruiters, patients, and clinic owners in exchange for patient referrals. The loss amount is approximately $253,049.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. Assistant U.S. Attorney Miesha Shonta Darrough is prosecuting this case.
51. United States v. Yamilet Diaz,
Case No. 18-20473-CR-Cooke
On June 5, 2018, Yamilet Diaz, 50, of Hialeah, Florida, was charged by indictment with one count of conspiracy to defraud the United States and receive health care kickbacks and four counts of receiving health care kickbacks. The charges stem from Diaz’s alleged role as a patient recruiter for Good Friends Services, Inc. (“Good Friends”), a now-defunct home health agency located in Hialeah Gardens, Florida. The indictment alleges that from approximately October 2012 to June 2013, Diaz received kickbacks in return for referring Medicare beneficiaries to Good Friends to serve as patients. The indictment further alleges that Diaz and her co-conspirators caused Medicare to make over $600,000 in payments to Good Friends based upon claims for home health services submitted on behalf of the beneficiaries recruited by Diaz.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Trial Attorney Leslie Wright.
52. United States v. Miriam Pardo,
Case No. 18-20504-CR-Moreno
On June 12, 2018, Miriam Pardo, 72, of Miami, Florida, was charged by indictment with one count of conspiracy to pay and receive health care kickbacks. The indictment alleges that from approximately July 2009 to at least November 2013, Pardo accepted kickbacks in return for referring Medicare beneficiaries from her clinic, Gables Medical Care Inc. (“Gables Medical Care”), to various Miami-area home health agencies to serve as patients. The indictment further alleges that Pardo accepted kickbacks in return for prescriptions for home health care and related medical records signed by a physician who worked at Gables Medical Care.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Trial Attorney Leslie Wright.
V. PRIVATE INSURANCE FRAUD (NON-MEDICARE)
53. United States v. Carlos Aguilar and Lyzt de Dios,
Case No. 18-20382-CR-Lenard
On May 8, 2018, Carlos Aguilar, M.D., 75, and Lyzt de Dios, 32, both of Miami, Florida, were charged by indictment with conspiracy to commit health care fraud health care fraud and four counts of health care fraud.
According to the indictment, Star Relief Center, LLC was a Miami medical clinic that purportedly provided private insurance beneficiaries with various medical treatments and services. Carlos Aguilar was a practicing physician. From January 2016 through September 2017, Dr. Aguilar and Lyzt de Dios submitted and caused the submission of claims, via interstate wires, totaling approximately $1,170,570 which allegedly falsely and fraudulently represented that various health care benefits, primarily physical therapy and injectable drugs, were medically necessary, prescribed by a doctor, and had been provided by caused Star Relief Center to insurance beneficiaries of BCBS. As a result of such false and fraudulent claims, BCBS made payments to the corporate bank accounts of caused Star Relief Center in the approximate amount of $748,632.
Mr. Greenberg commends the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Christopher J. Clark.
54. United States v. Frederick J. Baptista and Rafael Andres Cepeda,
Case No. 18-20476-CR-Ungaro
On June 5, 2018, Frederick Jose Baptista, 42, and Rafael Andres Cepeda, 48, both of Miami, Florida, were charged by indictment with conspiracy to commit health care fraud and six substantive counts of health care fraud.
According to the indictment, Baptista was the registered agent and president and Cepeda the vice-president of B&C Rehabilitation Center, a Miami medical clinic that purportedly provided private insurance beneficiaries with various medical treatments and services. From January 2014, through April 2017, Baptista and Cepeda submitted and caused the submission of claims, via interstate wires, totaling approximately $3,404,524, which allegedly falsely and fraudulently represented that various health care benefits, primarily physical therapy and injectable drugs, were medically necessary, prescribed by a doctor, and had been provided by B&C Rehabilitation Center to insurance beneficiaries of BCBS. As a result of such false and fraudulent claims, BCBS made payments to the corporate bank accounts of B&C Rehabilitation Center in the approximate amount of $568,175.
Mr. Greenberg commends the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Christopher J. Clark.
55. United States v. Pavel Hernandez Merino, et al.,
Case No. 18-20381-CR-Altonaga
On May 8, 2018, Pavel Luis Hernandez Merino, 36, Pablo Armando Orozco, 42, Pablo D. Orozco, 66, Carlos Ernesto Aguilar, 75, Juan Francisco Nin, 32, and Yosniel Blanco Salcines, 35, all of Miami, Florida, were charged by indictment with conspiracy to commit health care fraud health care fraud and eighteen counts of health care fraud.
According to the indictment, Merino, Pablo A. Orozco, and Pablo D. Orozco owned medical clinics that purportedly provided private insurance beneficiaries with various medical treatments and services. Aguilar was a practicing physician. Nin and Salcines recruited patients that were referred to BBB Medical, Michael Professional, Anthony Professional, Sun Medical, and Americare, Miami medical clinics that purportedly provided private insurance beneficiaries with various medical treatments and services. From July 2014 through July 2017, Merino, Pablo A. Orozco, Pablo D. Orozco, Aguilar, Nin, and Salcines submitted and caused the submission of claims, via interstate wires, totaling approximately $30,365,060 which allegedly falsely and fraudulently represented that various health care benefits, primarily physical therapy and injectable drugs, were medically necessary, prescribed by a doctor, and had been provided by BBB Medical, Michael Professional, Anthony Professional, Sun Medical, and Americare to insurance beneficiaries of BCBS. As a result of such false and fraudulent claims, BCBS made payments to the corporate bank accounts of BBB Medical, Michael Professional, Anthony Professional, Sun Medical, and Americare in the approximate amount of $13,615,398.
Mr. Greenberg commends the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Christopher J. Clark.
56. United States v. Sergio Lemus Carratala, Francel Rodriguez,
Case No. 18-20368-CR-Williams
On May 8, 2018, Sergio Lemus Carratala, 30, and Francel Rodriguez, 39, both of Miami, Florida, were charged by indictment with conspiracy to commit health care fraud and six counts of health care fraud.
According to the indictment, Carratala and Rodriguez were employees of Billing USA, Corp., a medical billing company that served as an intermediary between medical offices and clinics, and insurance companies. From January 2013 through February 2017, Carratala and Rodriguez, together with unindicted conspirators, submitted and caused the submission of claims, via interstate wires, totaling approximately $5,692,102, which allegedly falsely and fraudulently represented that various health care benefits, primarily physical therapy and injectable drugs, were medically necessary, prescribed by a doctor, and had been provided by Blue Diamond Medical Center Inc. (“Blue Diamond”), to insurance beneficiaries of BCBS. Blue Diamond was a Miami medical clinic that purportedly provides private insurance beneficiaries with various medical treatments and services. As a result of such false and fraudulent claims, BCBS made payments to the corporate bank accounts of Blue Diamond in the approximate amount of $653,893.
The indictment additionally alleged that Carratala and Rodriguez, along with unindicted conspirators, submitted and caused the submission of claims, via interstate wires, totaling approximately $5,943,053, which falsely and fraudulently represented that various health care benefits, primarily physical therapy and injectable drugs, were medically necessary, prescribed by a doctor, and had been provided by Salvus, LLC, to insurance beneficiaries of BCBS. Salvus, LLC was a Miami medical clinic that purportedly provides private insurance beneficiaries with various medical treatments and services. As a result of such false and fraudulent claims, BCBS made payments to the corporate bank accounts of Salvus, LLC in the approximate amount of $1,638,378.
Mr. Greenberg commends the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Christopher J. Clark.
57. United States v. Yosbel Otano Melendez and Yareli Paula,
Case No. 18-20502-CR-Martinez
On June 12, 2018, Yosbel Otano Melendez, 39, and Yareli Paula, 41, both of Miami, Florida, were charged by indictment with conspiracy to commit health care fraud and eight counts of health care fraud.
According to the indictment, Melendez and Paula allegedly recruited patients that were referred to Atlantic Mobile Services, Inc., a Miami medical clinic that purportedly provided private insurance beneficiaries with various medical treatments and services. From February 2013 through May 2016, Yosbel Otano Melendez and Yareli Paula submitted and caused the submission of claims, via interstate wires, totaling approximately $1,517,600, which falsely and fraudulently represented that various health care benefits, primarily physical therapy and injectable drugs, were medically necessary, prescribed by a doctor, and had been provided by Atlantic Mobile Services to insurance beneficiaries of BCBS. As a result of such false and fraudulent claims, BCBS made payments to the corporate bank accounts of Atlantic Mobile Services in the approximate amount of $980,243.
Mr. Greenberg commends the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Christopher J. Clark.
58. United States v. Clara Salazar-Vust, et al.,
Case No. 18-201243-CR-Altonaga
On April 3, 2018, Clara Salazar-Vust, 68, Olga Alvarado, 47, and Roberto Perez, 47, all of Miami, Florida, were charged by indictment with conspiracy to commit health care fraud and four substantive counts of health care fraud.
According to the indictment, Salazar-Vust, Alvarado, and Perez owned Salvus, LLC, a medical Miami clinic that purportedly provided private insurance beneficiaries with various medical treatments and services. From January 2013 through March 2018, the defendants allegedly submitted and caused the submission of claims, via interstate wires, totaling approximately $5,943,053, which falsely and fraudulently represented that various health care benefits, primarily physical therapy and injectable drugs, were medically necessary, prescribed by a doctor, and had been provided by Salvus, LLC, to insurance beneficiaries of BCBS. As a result of such false and fraudulent claims, BCBS made payments to the corporate bank accounts of Salvus, LLC in the approximate amount of $1,638,378.
Mr. Greenberg commends the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Christopher J. Clark.
59. United States v. Ivan Sierra,
Case No. 18-20548-CR-Gayles
On June 25, 2018, Ivan Sierra, 54, of Miami, Florida, was charged by information with one count of conspiracy to commit money laundering. The information charges Sierra with laundering approximately $937,000 for various physical therapy clinics in the Miami area. The cash generated from the laundering activity was allegedly used to pay kickbacks to patients for whom the clinics billed physical therapy services that were not medically necessary to private insurance companies.
Mr. Greenberg commends the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Trial Attorney Timothy P. Loper.
A criminal complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,700 defendants who collectively have falsely billed the Medicare program for over $14 billion.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Aruban Telecommunications Purchasing Official Sentenced to Prison in Money Laundering Conspiracy Involving Violations of the Foreign Corrupt Practices ActRead the Press Release
An Aruban official residing in Florida was sentenced to 36 months in prison today for money laundering charges in connection with his role in a scheme to arrange and receive corrupt payments to influence the awarding of contracts with an Aruban state-owned telecommunications corporation.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida and Assistant Special Agent in Charge Paul Keenan of the FBI’s Miami, Florida Field Office made the announcement.
Egbert Yvan Ferdinand Koolman, 49, a Dutch citizen residing in Miami, was sentenced by U.S. District Judge Federico A. Moreno of the Southern District of Florida, who also ordered Koolman to serve three years of supervised release following his prison sentence and to pay over $1.3 million in restitution. Koolman was an official of Servicio di Telecommunicacion di Aruba N.V. (Setar), an instrumentality of the Aruban government. He pleaded guilty on April 13, before Judge Moreno to one count of conspiracy to commit money laundering.
According to admissions made as part of his plea agreement, between 2005 and 2016, Koolman operated a money laundering conspiracy from his position as Setar’s product manager. Koolman admitted that, as part of the scheme, he conspired with Parker and others to transmit funds from Florida and elsewhere in the United States to Aruba and Panama with the intent to promote a wire fraud scheme and a corrupt scheme that violated the Foreign Corrupt Practices Act (FCPA). Koolman was promised and received bribes from individuals and companies located in the United States and abroad in exchange for using his position at Setar to award lucrative mobile phone and accessory contracts. He received the corrupt payments via wire transfer from banks located in the United States, in cash during meetings in Miami and in Aruba, and by withdrawing cash in Aruba using a bank card that drew money from a U.S.-based bank account. In exchange for the more than $1.3 million in corrupt payments that he received, Koolman also admittedly provided favored vendors with Setar’s confidential information.
In connection with the scheme, Lawrence W. Parker, Jr., 42, of Miami, pleaded guilty on Dec. 28, 2017 before U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida to one count of conspiracy to violate the FCPA and to commit wire fraud. He was sentenced on April 30, to serve 35 months in prison and was ordered to pay $701,750 in restitution.
The FBI’s International Corruption Unit in Miami is investigating the case. Trial Attorneys Jonathan Robell and Vanessa Snyder of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Lois Foster-Steers of the Southern District of Florida are prosecuting the case. The Criminal Division’s Office of International Affairs, as well as law enforcement colleagues in Aruba and Panama, provided significant assistance in this matter.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Three Individuals Charged in Florida-Based Investment Fraud SchemeRead the Press Release
On June 21, 2018, a grand jury in Miami indicted three individuals for their alleged participation in an investment fraud scheme that targeted investors throughout the Nation, defrauding them out of approximately $2 million. The main office operated out of Broward County, Florida.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Florida Office of Financial Regulation (OFR), West Palm Division, made the announcement.
Thomas Michael White, 59, of Parkland, Florida, John Kevin Reech, 56, of Delray Beach, Florida, and Joseph Mario Genzone, 53, of Boca Raton, Florida, were all charged with conspiracy to commit mail fraud and wire fraud, as well as substantive mail fraud charges. In addition to those charges, White was also charged with wire fraud. The defendants had their initial appearances in U.S. Magistrate Court today.
The indictment charges the defendants with participating in an alleged conspiracy involving the sale of stock and debt equity in First Call Ventures, LLC and its subsidiaries, all of which were owned and operated by Thomas Michael White. According to the Indictment, from January 2012 to November 2014, the defendants solicited investors located throughout the United States to buy shares or ownership units in First Call Ventures, LLC and its subsidiaries, which included, First Call Auto Transport, Frist Call Freight and First Call List.
The indictment alleges that the defendants made materially false statements which included, but were not limited to, that First Call Ventures would provide a “safe and profitable investment” where “you won’t lose your money,” that investors would receive a guaranteed return on investments, that no fees would be charged to investors unless First Call Ventures turned a profit, that the value of the investment would increase significantly, that First Call Ventures was successful and profitable, and that investor funds would be used for sales and marketing, working capital and general corporate purposes.
In fact, over 80% of all First Call Ventures’ investor funds went to White for salaries, fees and other monetary distributions to himself, Reech, Genzone, and others.
Mr. Greenberg commended the investigative efforts of the FBI and the Florida Office of Financial Regulation, West Palm Division. This case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
Individuals who believe that they may be a victim in this case should contact the FBI at www.fbi.gov for more information.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Seventh Individual Pleads Guilty in Opa Locka Municipal Corruption InvestigationRead the Press Release
Dante Starks, a close associate of former City of Opa Locka Commissioner Luis Santiago, pled guilty yesterday, before United States District Judge Jose E. Martinez, to charges arising from his participation in the long-running Opa Locka municipal corruption conspiracy and his failure to file federal income tax returns.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Starks pled guilty to a two-count Superseding Information. Specifically, Starks pled guilty to conspiring to commit extortion under color of official right and federal programs bribery, in violation of Title 18, United States Code, Sections 371, 666(a)(1)(B), and 1951(a), and to failing to file his 2015 federal income tax return, in violation of Title 26, United states Code, Section 7203. Starks is scheduled to be sentenced on August 31, 2018, at 2:00 p.m. before Judge Martinez.
According to the court record, including the stipulated factual basis for the plea, Starks conspired with former Opa Locka City Commissioner Luis Santiago, former Opa Locka City Manager David Chiverton, and former Opa Locka Assistant Public Works Director Gregory Harris, to use the official positions and authority that Santiago, Chiverton, and Harris had with the City of Opa Locka to solicit, demand, and obtain personal payments from businesses and individuals in exchange for taking official actions to assist and benefit those businesses and individuals in their official dealings with the City of Opa Locka.
Although Starks was not an official or employee of the City of Opa Locka, he was closely associated with and had great influence over Santiago. Starks also had, and exercised significant influence over, numerous other city officials and employees, including Chiverton and Harris, and he regularly used that significant influence to pressure and advise city officials and employees to take official actions on matters relating to occupational licenses, code enforcement citations and fines, liens, water service and billing, zoning, and city contracting. Working together, Santiago and Starks solicited and obtained illegal payments from businesses and individuals in Opa Locka, and in exchange, Santiago would take official actions on their behalf, and Starks and Santiago would pressure and advise Chiverton, Harris, and other City of Opa Locka employees to take official actions on behalf of those businesses and individuals.
In addition, Starks participated in a conspiracy with Santiago and others to receive bribes in exchange for ensuring that a particular company received a city contract. In April 2015, Santiago and Starks met with Raul Sosa Sr. (“Sosa Sr.”), who agreed to pay them a $10,000 bribe to ensure that the company Sosa Sr. was associated with, referred to as the “Towing Company,” was selected as one of the companies receiving a city towing contract. Over the next two months, Starks collected $10,000 in cash payments from Raul Sosa Jr. (“Sosa Jr.”), the Towing Company’s manager, and in exchange, Starks arranged for Opa Locka’s Purchasing Director to assemble and prepare the Towing Company’s bid package. After this bid was submitted, Starks violated the city’s purchasing Cone of Silence by contacting a member of the city’s committee evaluating the towing bids and directing that individual to rank the Towing Company as the number one company. To complete the illegal arrangement, at the June 24, 2015, City Commission meeting authorizing the award of the towing contracts, Santiago used his position as a City Commissioner to bring forward and vote in favor of the resolution authorizing the City Manager to enter into a city contract with the Towing Company.
Starks also willfully failed to file federal income tax returns for the tax years 2014, 2015 and 2016.
Related cases arising from the Opa Locka corruption investigation are the following:
Santiago previously pled guilty to conspiring to commit Federal programs bribery and Hobbs Act extortion under color of official right (Case No. 16-20971-CR). Santiago was sentenced to 51 months in prison.
Chiverton previously pled guilty to conspiring to commit Federal programs bribery and Hobbs Act extortion under color of official right (Case No. 16-20596-CR). Chiverton was sentenced to 38 months in prison.
Harris previously pled guilty to conspiring to commit Federal programs bribery and Hobbs Act extortion under color of official right (Case No. 16-20589-CR-BLOOM). Harris was the first defendant to plead guilty to charges arising from this investigation, and received a sentence of probation.
Sosa Sr. and Sosa Jr. previously pled guilty to conspiracy to commit Federal programs bribery (Case No. 18-20256-CR). They are pending sentencing in August 2018 before Judge Martinez.
Mr. Greenberg commended the investigative efforts of the FBI Miami Area Corruption Task Force and IRS-CI in this matter. Mr. Greenberg thanked the Miami-Dade Police Department and Hialeah Police Department for their assistance. This case is being prosecuted by Assistant U.S. Attorneys Edward N. Stamm and Maurice Johnson.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Operator of Loxahatchee Facility Pleads Guilty to Inhumane Slaughter PracticesRead the Press Release
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Larry S. Hortert, Regional Director, United States Department of Agriculture (USDA), Food Safety & Inspection Service (FSIS), announced that Victor H. Gonzalez, 53, of Loxahatchee, Florida, pled guilty yesterday for his involvement in the inhumane slaughter of swine and the sale of swine meat for human consumption, in violation of the Humane Methods of Slaughter Act (HMSA), Title 71, United States Code, Section 1902(a) and the Federal Meat Inspection Act (FMIA), as amended, Title 21, United States Code, Section 610(b).
Gonzalez pled guilty before United States District Judge Donald M. Middlebrooks. Sentencing is scheduled for August 27, 2018, at 10:30 a.m., in West Palm Beach. Gonzalez faces a maximum possible sentence of 3 years in prison, a $250,000 fine, and a year of supervised release.
According to the court record, including a Joint Factual Statement, Gonzalez was the president of El Milagro Nursery, Inc. (“Milagro”), a company with its principal place of business in Loxahatchee, Florida. Gonzalez was responsible for the day-to-day management and oversight of its activities, and engaged in the slaughtering, processing, handling, storing, and selling of meat and meat food products in commerce, for human consumption, including swine.
On December 17, 2016, federal officers conducted a surveillance and inspection visit at the Milagro facility. Employees were observed engaged in the slaughter and processing of swine for customers. The premises lacked proper, operable equipment to stun or otherwise render the animals insensible to pain, as required by law. The business practices at Milagro, as directed by Gonzalez, were not humane.
The HMSA established as the public policy of the United States, that the slaughtering or handling for slaughter of livestock, including swine, may only be carried out by humane methods. The law requires that such animals be rendered insensible to pain by one of the methods described in the law, prior to the animal being shackled, hoisted, thrown, cast, or cut. Title 7, United States Code, Sections 1901-1902(a).
Mr. Greenberg commended the investigative efforts of the USDA FSIS, Office of Program Evaluation, Enforcement and Review, Compliance & Investigations Division and thanked the Palm Beach County Agricultural Unit for their assistance. The matter is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Individuals Convicted and Sentenced to Prison for Alien SmugglingRead the Press Release
Boat Captain Assaulted During Smuggling Venture
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, announce the conviction and sentencing of three individuals who injured a man while smuggling aliens by sea.
According to the court docket, in September of 2016, Giorgi Abrakhamia, 37, Giorgi Kokuashvili, 41, and Mikheil Gogiashvili, 30, all from the Republic of Georgia, smuggled two Brazilian nationals by boat into South Florida from Freeport, Bahamas. During the course of the alien smuggling venture, Abrakhamia and Kokuashvili stabbed a Bahamian charter boat captain with a knife and pushed him overboard in the Straits of Florida before comandeering his vessel to transport the aliens. The captain survived the attack.
On February 21, 2018, Kokuashvili pled guilty to alien smuggling. On March 27, 2018, Abrakhamia and Gogiashvili also pled guilty to alien smuggling. On June 20, 2018, U.S. District Judge Kennetth A. Marra sentenced Abrakhamia and Kokuashvili to 78 months in prison, and Gogiashvili to 36 months in prison (Case No. 17-CR-80112).
Mr. Greenberg commended the investigative efforts of ICE-HSI in this matter. Mr. Greenberg also thanked the Royal Bahamiam Police Force for their assistance. This case was prosecuted by Special Assistant United States Attorneys Emily Rose and Philip Jones and United States Attorney Adrienne Rabinowitz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
President and Vice President of South Florida Construction Company Charged with Defrauding Low-Income Housing Development ProgramRead the Press Release
President and vice president of South Florida construction company charged with defrauding low-income housing development program.
Benjamin G. Greenberg, U.S. Attorney for the Southern District of Florida, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), Nadine Gurley, Special Agent in Charge, United States Department of Housing and Urban Development, Office of Inspector General (HUD-OIG), Juan J. Perez, Director, Miami-Dade Police Department (MDPD), and Mary T. Cagle, Inspector General, Miami Dade County Office of the Inspector General, made the announcement.
Javier Estepa, 47, of Davie, Florida and Diego Alejandro Estepa Vazquez, 36, of Boca Raton, Florida, were charged in a four-count indictment with conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349, and wire fraud, in violation of Title 18, United States Code, Section 1343. The defendants are scheduled to have their initial appearance on June 25, 2018 at 1:30 p.m. before United States Magistrate Judge Patrick A. White. If convicted, the defendants face up to twenty years in prison, three years of supervised release, a $250,000 fine, and restitution, as to each charged count.
According to the indictment, between June 2014 and December 2016, Estepa and Estepa Vazquez engaged in a scheme to unlawfully enrich themselves by securing Miami-Dade Public Housing and Community Development (PHCD) bid awards and causing payments on those contracts by making materially false and fraudulent representations and by concealing material facts.
President Estepa and Vice President Estepa Vazquez of Aaron Construction Group submitted bids to PHCD for specific renovation and repair of low-income housing in various locations throughout Miami-Dade County. It is alleged that, in their bids, Estepa and Estepa Vazquez falsely and fraudulently represented the number of workers to be employed on the projects, claimed subcontractors would not be utilized in connection with the contract, and asserted that Aaron Construction would obtain workers compensation insurance, in accordance with state laws. By falsely and fraudulently under reporting the number of workers on the projects, Aaron Construction was able to submit lower bids for the PHCD repair work. In order to obtain payment from PHCD, Estepa and Diego Estepa Vazquez submitted Periodic or Final Estimates for Payment and supporting documents that allegedly contained false and fraudulent payroll records, falsely characterized subcontractors and subcontractor employees as employees of Aaron Construction, and included sworn statements of compliance that falsely and fraudulently certified that the information submitted was true and correct. As a result of these false and fraudulent submissions, PHCD transferred funds to bank accounts controlled by Estepa and Estepa Vazquez.
An indictment is a charging instrument containing accusations and the defendants are presumed innocent until proven guilty in a court of law.
Mr. Greenberg commended the investigative efforts of the DOL-OIG, HUD-OIG, MDPD’s Public Corruption Unit and the Miami Dade County Office of the Inspector General in this matter. This case is being prosecuted by Assistant United States Attorney Joshua S. Rothstein.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Jury Convicts Vero Beach Attorney of Conspiracy and Making False Statements to a Federally Insured InstitutionRead the Press Release
On June 15, 2018, a federal jury in West Palm Beach, Florida, convicted Vero Beach attorney Eric B. Granitur, 60, of participating in a criminal conspiracy and making false statements to a federally insured institution.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Gavin Gumbinner, Resident Agent in Charge, Fort Pierce, Florida, Federal Bureau of Investigation, (FBI); and Edwin Bonano, Special Agent in Charge, Tampa, Florida, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG) made the announcement.
Granitur was convicted, at trial, of one count of conspiracy to commit the offense of making false statements to a federally insured institution, in violation of Title 18, United States Code, Section 371; and two counts of making a false statement to a federally insured institution, in violation of Title 18, United States Code, Section 1014. Granitur’s co-conspirators, George Heaton, Deborah Dentry Baggett, and Stephen McKenzie, have already pled guilty and are awaiting sentencing.
According to the evidence presented at trial, in 2009, Eric Granitur, a member of the Florida Bar, owned and operated Live Oak Title, which conducted two real estate closings for the purchase of five condominiums at the Vero Beach Hotel and Spa. The seller and developer of the Vero Beach Hotel and Spa, George Heaton, offered numerous incentives to buyer Stephen McKenzie to purchase the condominiums. Heaton agreed to pay the “cash-to-close” amount that the buyer McKenzie was expected to bring to closing. Additionally, Heaton paid for the closing costs and paid McKenzie additional incentives.
Granitur’s title company, Live Oak Title, conducted the closings for the sales of the Vero Beach Hotel and Spa condominium units sold to buyer Stephen McKenzie. As an escrow agent, Granitur was required to truthfully and accurately prepare and distribute a settlement statement to the financial institutions, known as a “HUD-1,” in preliminary form for review by the financial institution, prior to the closing of escrow. The closing statement was required to accurately reflect, among other information, the sales price, the closing funds provided by the borrower and all of the seller’s contributions. As an escrow agent, Granitur was responsible for receiving and holding in trust, in an escrow account, the mortgage loan proceeds from the financial institutions that financed the purchase of the condominium units, and he was responsible for disbursing those loan proceeds only after final approval by the financial institutions.
On two occasions, Granitur knowingly caused a false closing statement to be transmitted to a federally insured financial institution. The HUD-1 closing statements failed to truthfully disclose seller credits and incentives. Additionally, the closing statements failed to disclose that the seller was paying the buyer’s “cash-to-close.” The financial institutions relied upon the closing statement in authorizing the release of funds.
Sentencing will take place before United States District Judge Robin L. Rosenberg, in West Palm Beach. A sentencing date has not yet been set.
Mr. Greenberg commended the investigative efforts of the FBI and FHFA-OIG. This case is being prosecuted by Special Assistant United States Attorney Joseph A. Capone and Assistant United States Attorney Daniel E. Funk.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Investment Advisors Sentenced to Prison for Defrauding a Client and Tax ChargesRead the Press Release
Two Palm Beach County investment advisors were sentenced to prison for their roles in defrauding a client and tax evasion charges.
Benjamin G. Greenberg, U.S. Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Shawn O’Sullivan, 59, was sentenced today to 16 months in prison, to be followed by 3 years of supervised release. On May 23, 2018, co-defendant Heidi Wivolin, 49, was sentenced to 24 months in prison, to be followed by 3 years of supervised release. Both Wivolin and O’Sullivan were ordered to pay restitution of $2,757,865.51 to victims. Wivolin was ordered to pay an additional $140,069 to the IRS. O’Sullivan was ordered to pay $121,167 to the IRS.
The defendants previously pled guilty to one count of conspiracy to commit mail fraud, in violation of Title l8, United States Code, Sections 1349, and one count of tax evasion, in violation of Title 26, United States Code, Section 7201. Wivolin also pled guilty to one count of willfully filing a false tax return, in violation of Title 26, United States Code, Section 7206(1).
According to publicly filed court documents, O’Sullivan and Wivolin were investment advisors to an elderly client. After the client’s death, Wivolin continued to financially advise the victim’s daughter (Victim #1), who inherited part of the elderly client’s estate. Wivolin reviewed the investments, and advised Victim #1 regarding various annuities and insurance policies she and her husband had. Wivolin also prepared the state and federal tax returns for Victim #1 and her husband over a number of years, and met with them to advise them on their investments and prepare their tax returns.
Between July 2008 and January 2014, the defendants devised a scheme to defraud Victim #1 by obtaining money from her under false and fraudulent pretenses by purporting to sell her a tax deferred, fixed interest rate bond which the defendants never intended to, nor did actually purchase with the money. As part of the scheme, on July 15, 2008, Wivolin offered Victim #1 $100,000 bond through Finntrust, promising a 7% rate of return. Victim #1 agreed to purchase the Finntrust bond and gave Wivolin a check for $100,000. O’Sullivan was the director, registered agent, and at times, an officer of Finntrust lnc.
Over the next few years, Wivolin gave Victim #1 numerous verbal assurances that her money was safely invested and secure in the Finntrust bond, when in truth, the defendants never invested Victim #1’s $100,000 in a bond or in any investment vehicle whatsoever. Instead, the defendants used the $100,000 for their own personal and business expenses.
O’Sullivan failed to file tax returns and report all of his income for tax years 2011 to 2013, resulting in taxes due and owing totaling $121,167. Wivolin failed to report all of her income to the IRS, resulting in a tax due and owing of $140,069 for tax years 2009 to 2013.
Mr. Greenberg commended the investigative efforts of IRS-CI and the FBI. The case was prosecuted by Assistant U.S. Attorney Aurora Fagan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Grand Juror Pleads Guilty to Obstruction of JusticeRead the Press Release
A former federal grand juror pled guilty today to obstruction of justice.
Benjamin G. Greenberg, U.S. Attorney for the Southern District of Florida and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Leslie Lynn Heburn, 37, Miami, pleaded guilty before United States District Judge Marcia G. Cooke to obstruction of justice, in violation of Title 18, United States Code, Section 1503. The defendant is scheduled to be sentenced by Judge Cooke on August 22, 2018 at 1:00 p.m. The defendant is facing a maximum statutory penalty of ten years in prison, three years of supervised release, and a $250,000 fine.
On January 19, 2017, Heburn was sworn in as a federal grand juror and advised of the rules concerning grand jury secrecy, including that a grand juror is not to disclose matters occurring before the grand jury. Heburn was also advised of the possible criminal consequences of making any unauthorized disclosure of grand jury information.
On May 4, 2017, Heburn was present during the United States Attorney’s Office presentation to the federal grand jury of a proposed indictment for Rocky Dejesus Molina. Copies of the proposed indictment for Molina were distributed to the members of the grand jury, but they were not supposed to leave the grand jury chamber. Later that day, the grand jury returned an indictment against Molina (Case Number 17-20304-CR-ALTONAGA).
On May 10, 2017, prior to Molina’s arrest, Heburn used an alias Facebook account to contact Molina’s girlfriend via Facebook Messenger. During the course of their communication, Heburn advised Molina’s girlfriend that she was serving as a grand juror and had seen Molina’s name on an indictment. Heburn then warned Molina’s girlfriend that Molina had been set up by a “snitch” since March 2016.
After Molina’s arrest on May 24, 2017, Molina’s girlfriend contacted Heburn at the alias Facebook account to ask more questions. Heburn sent the girlfriend photos of the proposed indictment for Molina that was part of the secret grand jury proceedings. Heburn continued to tell Molina’s girlfriend that Molina had been set up on a number of occasions by a confidential informant. Heburn acknowledged during their communications that she knew she could get into trouble for disclosing information regarding the grand jury proceedings.
On October 20, 2017, Molina pleaded guilty to dealing in firearms without a license and being a felon in possession of a firearm. He was sentenced to 180 months in prison on January 3, 2018.
Mr. Greenberg commends the investigative efforts of the FBI in this matter. He also thanks the FBI Miami Area Corruption Task Force, Miami-Dade Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives for their assistance. This case is being prosecuted by Assistant U.S. Attorney Brian Dobbins.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Colombian Drug Kingpin Sentenced to 31 Years in Prison for Drug TraffickingRead the Press Release
Colombian drug kingpin Henry de Jesus Lopez Londoño was sentenced yesterday to 31 years in prison for importing multi-ton quantities of cocaine into the United States.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, made the announcement.
A Miami jury had found Henry de Jesus Lopez Londoño, a/k/a “Mi Sangre,” 47, a citizen of Colombia, guilty of conspiring to distribute over five kilograms of cocaine with the knowledge that it would be unlawfully imported into the United States, in violation of Title 21, United States Code, Sections 959 and 963. United States Senior District Judge Donald L. Graham sentenced the defendant to 372 months in prison, to be followed by 5 years of supervised release.
The evidence presented at the six week trial, which included the testimony of special agents from DEA, Homeland Security Investigations, the Internal Revenue Service, Argentinean National Police, and multiple co-conspirators, showed that the defendant in Colombia was a leader of the Urabeños, one of the largest and most dangerous drug cartels in the world. As a leader, the defendant was part of a drug distribution chain spanning from Colombia to Central America, Mexico, and the United States. The evidence at trial showed that as part of this conspiracy, the defendant was responsible for trafficking over 60,000 kilograms of cocaine. The evidence at trial also revealed that at one point, Lopez Londoño attempted to cooperate with U.S. law enforcement. However, when it was discovered that the defendant was lying and committing acts of violence, he became a target of investigation. That trial evidence further showed that Lopez Londoño had engaged in unauthorized drug trafficking activities while attempting to cooperate.
The prosecution was part of Operation Golden Eagle, which is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (“OCDETF”), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Greenberg commend the DEA Miami Field Division, DEA Bogota Country Office, DEA Buenos Aires Country Office, the Governments of Colombia and Argentina, the Criminal Division’s Office of International Affairs, the Office of the Judicial Attaché in Colombia, and the U.S. State Department for their assistance in this matter. This case was prosecuted by Assistant U.S. Attorneys Robert J. Emery and Michael B. Nadler.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Port St. Lucie Resident Pleads Guilty to International Firearms TraffickingRead the Press Release
A Port St. Lucie resident pled guilty today to unlawfully exporting firearms, firearm accessories, and ammunition from South Florida to Rio de Janeiro, Brazil.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI); Diane J. Sabatino, Director, Field Operation, U.S. Customs and Border Protection (CBP), Miami Field Office; Peter J. Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division; and Ken J. Mascara, Sheriff, St. Lucie County Sherriff’s Office, made the announcement.
Frederik Barbieri, 46, of Port St. Lucie, Florida, pled guilty to one count of conspiracy to commit offenses against the United States, in violation of Title 18, United States Code, Section 371, and one count of unlicensed exportation of defense articles, in violation of Title 22, United States Code, Section 2778. Barbieri faces a possible maximum statutory sentence of 25 years in prison. Barbieri is scheduled to be sentenced on July 19, 2018, at 9:30 a.m., by United States District Court Judge Federico A Moreno.
According to stipulated facts filed in court, from May of 2013 through February of 2018, Barbieri conspired with others to: possess firearms with obliterated serial numbers; deliver packages containing those firearms to contract carriers for international shipment without providing notice that the packages contained firearms; and smuggle firearms, firearm accessories, and ammunition from the United States to Rio de Janeiro, Brazil.
During this period, a shipment sent by Barbieri was intercepted in Rio de Janeiro by Brazilian law enforcement and found to contain approximately thirty AR-15 and AK-47 rifles and firearm magazines, all concealed in four 38-gallon Rheem water heaters. The water heaters were hollowed out and loaded with the contraband, and the serial numbers on each of the firearms had been obliterated. The same day that Brazilian authorities intercepted his shipment, Barbieri called and requested that the freight forwarder destroy the related paperwork.
Documentation provided by the freight forwarder revealed Barbieri’s historical shipments. In addition to shipping the four Rheem water heaters in which he concealed approximately thirty rifles, Barbieri also shipped to Brazil an additional 120 Rheem water heaters, as well as 520 electric motors and 15 air conditioning units, from May of 2013 to May of 2017, using that freight forwarder. These items are all consistent with objects used to conceal the illegal international shipment of firearms and ammunition.
In February 2018, federal agents executed a warrant to search a storage unit rented by Barbieri in Vero Beach, Florida. In the storage unit, law enforcement discovered 52 rifles, 49 of which were wrapped for shipment with obliterated serial numbers. In addition, law enforcement discovered dozens of high capacity firearm magazines, over 2,000 rounds of ammunition, and packaging materials. Barbieri was arrested the following day.
It is illegal for civilians to possess firearms in Brazil. According to Brazilian law enforcement, AK and AR rifles have a black market value of approximately $15,000 to $20,000 in the black market. The retail cost of those firearms in the United States is approximately $700 to $1,000.
Neither Barbeiri, nor any of his coconspirators, obtained a license or written approval from the United States Department of State to export any defense articles. Non-automatic firearms, firearm accessories, and ammunition are articles designated as “defense articles,” pursuant to federal regulations.
Mr. Greenberg commended the investigative efforts of ICE-HSI, ATF, and CBP in connection with this matter. This case is being prosecuted by Assistant U.S. Attorney Brian J. Shack.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Deputy Attorney General Recognizes Southern District of Florida EmployeesRead the Press Release
Assistant United States Attorney Julia J. “Josie” Vaglienti, Assistant United States Attorney Lawrence D. LaVecchio, Administrative Officer Lazaro Feliciano, Assistant United States Attorney Mary V. “Jena” King, Legal Assistant Karol Gomez, Law Enforcement/Community Coordinator James D. “J.D.” Smith, Reentry & Community Outreach Specialist Keisha E. Bazile, and Law Enforcement Coordination Specialist Mark A. McKinney, Jr. of the U.S. Attorney’s Office in the District of Florida were among 162 members of the Department of Justice recognized by Deputy Attorney General Rod Rosenstein, and Executive Office for U.S. Attorneys (EOUSA) Director James Crowell, IV at the 34th Director’s Awards Ceremony today in Washington D.C.
The Southern District of Florida was one of 35 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In his prepared remarks, Deputy Attorney General Rosenstein told the awardees, “Today’s honorees earned the esteem of their colleagues. But most importantly, they earned the gratitude of our fellow citizens — the people whose communities you made safer, whose lives you improved, and whose trust you rewarded. Today, we pause to honor and recognize a small portion of your work.”
Julia J. “Josie” Vaglienti and Lawrence D. LaVecchio were recognized for their outstanding work in the investigation and prosecution of one of the largest and most well organized gangs operating in the United States—the Latin Kings. The gang conducts its criminal activities through groups they refer to as “tribes.” In 2014, federal, state, and local law enforcement agencies commenced an investigation into the activities of several tribes operating in South Florida. Utilizing a full range of sophisticated investigative techniques, Ms. Vaglienti and Mr. LaVecchio gathered evidence of crimes committed by members of these tribes and thwarted imminent acts of violence by gang members, including robbery and attempted murder. Over two years, convictions were obtained and lengthy prison sentences were imposed again 39 gang members, many of whom occupied leadership positions, on charges including RICO conspiracy, armed robbery, narcotics trafficking and firearms offenses, effectively dismantling the Latin Kings in South Florida.
Lazaro Feliciano, Mary V. “Jena” King, and Karol Gomez were recognized along with other individuals for their work coordinating and implementing emergency response efforts for the District of Puerto Rico and the District of the Virgin Islands in an effort to ensure these districts were operational in the aftermath of Hurricanes Irma and Maria. They reviewed and analyzed emergency relief policies to find the best ways to handle emergency relief efforts which could serve as best practices for other United States Attorneys’ offices facing similar emergencies. When living conditions in affected areas were dire, these employees took charge to ensure generators and other key items were shipped to critical locations. In a situation where many employees did not have power or water, those who were present in the aforementioned districts, the Executive Office for United States Attorneys, and other districts worked long hours and over the weekends to ensure employees were able to push forward and deal with the catastrophe before them and to eventually report to work. They went above and beyond the call of duty, inspiring others to do the same while making an extraordinary contribution in the midst of a very difficult crisis.
James D. “J.D.” Smith, Keisha E. Brazile, and Mark A. McKinney, Jr. were recognized for their incredibly hard work and determination in forging enduring and positive working relationships with law enforcement agencies, community leaders, nonprofit agencies, government agencies, and education and faith-based organizations to implement, operate, and coordinate prevention and reentry programs in “hot-spot” communities throughout the Southern District of Florida. The robust violence prevention strategy they spearhead furthers the priorities of the United States Attorney’s Office to reduce violent crime, gang activity, drug abuse, and firearm offenses.
“The men and women that were honored today, as representatives from the U.S. Attorney’s Office for the Southern District of Florida, exemplify the Department’s tireless commitment to justice, integrity and community involvement,” stated U.S. Attorney Benjamin G. Greenberg. “We applaud the invaluable accomplishments of the award recipients and all public servants who strive to protect and enhance the quality of life of our local citizens and foreign neighbors.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Additional information regarding the United States Attorney’s Office for the Southern District of Florida can be found at https://www.justice.gov/usao-sdfl.
Former Bureau of Prisons Correctional Officer Sentenced to 5 Years in Prison for Participating in Prison-Based Fraud SchemeRead the Press Release
Former Bureau of Prisons (BOP) correctional officer Michael Mazar, 39, of Hollywood, was sentenced today to 5 years in prison and ordered to pay over $8 million in restitution for his participation in a mail and wire fraud scheme orchestrated from a Miami federal prison.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Robert A. Bourbon, Special Agent in Charge, United States Department of Justice, Office of the Inspector General (DOJ-OIG), Miami Field Office, made the announcement.
According to information disclosed in court, Mazar was employed as a BOP correctional officer at the Federal Detention Center in Miami, Florida, from July 2009 through April 2017. In February 2017, Mazar provided co-conspirator James Sabatino, an inmate, with several cellular telephones and other items. Using the contraband cellular telephones provided by Mazar, Sabatino contacted several retail and jewelry store employees and brand representatives via telephone calls, e-mails, and text messages. Sabatino pretended to be an employee of various film and music companies and convinced the victims to send retail items such as handbags, wristwatches, apparel, and jewelry to various locations in South Florida and elsewhere.
According to the Indictment, the victim companies shipped the retail items and jewelry to Sabatino’s co-conspirators, who then sold the fraudulently obtained items at pawnshops and jewelry stores in South Florida and elsewhere. Mazar received the ill-gotten proceeds, including retail items, jewelry, and U.S. currency, from these co-conspirators and stored them at his residence.
According to information disclosed in court, Sabatino, while in prison, directed Mazar and other co-conspirators to travel to Atlanta, Georgia, from South Florida, in order to transport and sell several pieces of fraudulently obtained jewelry valued at over $3 million. Mazar transported a portion of the proceeds from the sale of the stolen jewelry from Atlanta, Georgia, to South Florida.
Sabatino previously pled guilty to a related racketeering charge in the Southern District of Florida, Case Number 16-20519-CR-Lenard. On November 13, 2017, Sabatino was sentenced to a term of 20 years in prison.
Mazar previously pled guilty to one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349. U.S. District Judge Marcia G. Cooke sentenced Mazar to 60 months in prison and 3 years of supervised release. Mazar was also ordered to pay $8,949,025.11 in restitution.
Mr. Greenberg commended the investigative efforts of the FBI and DOJ-OIG. This case was prosecuted by Assistant United States Attorneys Christopher Browne and Nalina Sombuntham.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Department of Justice Announces Place to Worship InitiativeRead the Press Release
The Department of Justice today announced the “Place to Worship Initiative,” which will focus on protecting the ability of houses of worship and other religious institutions to build, expand, buy, or rent facilities—as provided by the land use provisions of the Religious Land Use and Institutionalized Persons Act (RLUIPA).
In announcing the initiative, Attorney General Sessions provided the following statement:
“The Constitution doesn't just protect freedom to worship in private—it protects the public exercise of religious belief, including where people worship together," Attorney General Sessions said. "Under the laws of this country, government cannot discriminate against people based on their religion--not in law enforcement, not in grant-making, not in hiring, and not in local zoning laws. President Trump is an unwavering defender of the right of free exercise, and under his leadership, the Department of Justice is standing up for the rights of all Americans. By raising awareness about our legal rights, the Place to Worship Initiative will help us bring more civil rights cases, win more cases, and prevent discrimination from happening in the first place."
The Department will work with the United States Attorney’s Offices to strengthen awareness of the land use provisions of RLUIPA by: hosting community outreach events across the country, educating municipal officials and religious organizations about RLUIPA’s requirements, and providing additional training and resources for federal prosecutors. The first community outreach event under the initiative will be held on June 25, in Newark, New Jersey, led by the U.S. Attorney’s Office for the District of New Jersey.
The Department today is also launching a new web page, including an information page and easily accessible complaint portal, a new Q and A document on RLUIPA, and other materials (https://www.justice.gov/crt/place-worship-initiative). In addition, the Department has created a new RLUIPA tool kit for Department lawyers working on RLUIPA cases, and is holding a webinar on June 26 for providing training and resources for U.S. Attorney’s offices.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. Specifically, RLUIPA bars land use regulations that impose a substantial burden on religious exercise without a compelling justification, requires governments to treat houses of worship as favorably as nonreligious assemblies, and bars governments from discriminating among religions and from totally or unreasonably excluding houses of worship.
The Justice Department also announced today that it brought a RLUIPA complaint against the Borough of Woodcliff Lake and the Woodcliff Lake Zoning Board of Adjustment in New Jersey (https://www.justice.gov/opa/pr/justice-department-files-lawsuit-against-borough-woodcliff-lake-new-jersey-over-denial-zoni-0?utm_medium=email&utm_source=govdelivery).
Persons who believe their rights under RLUIPA have been violated may contact the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339, the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or the U.S. Attorney’s Office for the Southern District of Florida at (305) 961-9327.
More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/rluipa.
Law Enforcement Partnership Targets Armed Robbers of Miami Beach TouristsRead the Press Release
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Daniel J. Oates, Chief, City of Miami Beach Police Department, announce the conviction and sentencing of five individuals who participated in armed robberies of Miami Beach tourists.
In February of 2017, Roy William Reed, 24, from Memphis, Tennessee held up two tourists at gunpoint on Ocean Drive, in Miami Beach, while Ashley Brooks, 25, also from Memphis, acted as a lookout (Case No. 17-CR-20930). During the course of the robbery, Reed took, among other items, the victims’ wallets, cash and cellular telephones. Shortly after the robbery, Brooks attempted to use one of the victims’ credit cards at a gas station.
On March 13, 2018, Reed pled guilty to conspiracy to commit Hobbs Act robbery, two counts of Hobbs Act robbery, and brandishing a firearm in furtherance of a crime of violence. On the same day, Brooks pled guilty to brandishing a firearm in furtherance of a crime of violence. On May 15, 2018, U.S. District Judge Donald M. Middlebrooks sentenced Reed and Brooks to 124 months and 84 months, respectively. A restitution hearing has been scheduled for Reed and Brooks on July 17, 2018, at 11:00 a.m., before Judge Middlebrooks.
Similarly, in October of 2017, Rahshard Jovan Stepherson, 45, and Vidyapati El, both of Riviera Beach, and Kemon Dominique Thompson, 25, of Opa Locka, held two foreign tourists at gunpoint in a stairwell on Miami Beach (Case No. 17-CR-20895). Stepherson shoved a firearm into the victims’ necks and stomachs and forced them to comply with his demands. The three defendants ultimately took the tourists’ wallets, watches, and cell phones, before fleeing the crime scene.
On April 10, 2018, a federal jury convicted Stepherson of conspiracy to commit Hobbs Act robbery, Hobbs Act robbery, and brandishing a firearm in furtherance of a crime of violence. Stepherson was sentenced today by Judge Middlebrooks to 360 months in prison and was ordered to pay $6,600 in restitution to the victims.
Defendants Thompson and El pled guilty, on March 20, 2018, to brandishing a firearm in connection with this robbery. On May 15, 2018, Judge Middlebrooks sentenced El to 86 months in prison and was ordered to pay $8,620 in restitution to the victims. Thompson was sentenced today by Judge Middlebrooks to 96 months in prison and was ordered to pay $8,300 in restitution to the victims.
All five defendants were also ordered to serve 5 years of supervised release, following their release from prison.
These armed robbery cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Mr. Greenberg commended the investigative efforts of the FBI and the City of Miami Beach Police Department in this matter. Mr. Greenberg thanked the Shelby County Sheriff’s Office in Memphis for their assistance. These cases are being prosecuted by Assistant United States Attorneys Daniel Marcet, Jessica Obenauf, and David Turken.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Dark Web Vendor Pleads Guilty to Narcotics Trafficking and Money Laundering ChargesRead the Press Release
A French national who was serving at times as an administrator and senior moderator on one of the largest dark web criminal marketplaces pleaded guilty today to conspiracy to possess with the intent to distribute controlled substances and conspiracy to launder money.
U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, and Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration (DEA) Miami Field Office made the announcement.
Gal Vallerius, aka “Oxymonster,” 36, pleaded guilty before U.S. District Court Judge Robert N. Scola Jr. in the Southern District of Florida. According to the court record, including the agreed upon factual proffer, beginning in or around November 2013 a criminal online marketplace known as Dream Market began operating on the Tor “dark web” network. Dream Market was designed to promote and facilitate the anonymous sale of illegal items. In time, the Dream Market website became one of the largest dark web criminal marketplaces. All of the items and services on Dream Market were offered for sale in exchange for Bitcoin and other peer-to-peer crypto-currencies.
According to the agreed upon factual proffer, Vallerius first participated in the conspiracy by becoming a vendor on Dream Market. As a vendor, he sold Oxycodone and Ritalin under the moniker “Oxymonster.” Shortly thereafter, Dream Market employed the defendant who acted at times as an administrator and senior moderator. In these positions, he played a role supporting the daily illicit transactions between buyers and vendors on Dream Market, such as the trafficking in narcotics, and the laundering of illicit proceeds using virtual currencies, Dream Market’s tumblers and the dark web. Vallerius is scheduled to be sentenced by Judge Scola on Sept. 25 at 8:30 a.m.
This investigation and prosecution was carried out by members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force. The South Florida HIDTA, established in 1990, is made up of federal, state and local law enforcement agencies that, cooperatively, target the region’s drug trafficking and money laundering organizations. The South Florida HIDTA is funded by the Office of National Drug Control Policy which sponsors a variety of initiatives focused on combatting the nation’s illicit drug trafficking threats.
The prosecution is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state, and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state, and local law enforcement.
Mr. Greenberg commended the investigative efforts of the DEA Miami Field Office and Paris Country Office, FBI Miami, IRS Criminal Investigation Miami Field Office, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Miami and Atlanta Field Offices, U.S. Customs and Border Protection’s Field Operations Atlanta, U.S. Postal Inspection Service Miami Field Office, the Department of Justice’s Office of International Affairs, Europol, Special Operations Division (SOD), Finnish National Police, Finnish International Judicial Administration of the Ministry of Justice, Dutch National Police, French Ministry of Justice and the Direction Interregionale de la Police Judiciaire as well as the U.S. Attorney’s Office for the Northern District of Georgia. The case is being prosecuted by Assistant U.S. Attorneys Juan A. Gonzalez and Frank R. Maderal of the Southern District of Florida and Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS).
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Dark Web Vendor Pleads Guilty to Narcotics Trafficking and Money Laundering ChargesRead the Press Release
A French national who was serving at times as an administrator and senior moderator on one of the largest dark web criminal marketplaces pleaded guilty today to conspiracy to possess with the intent to distribute controlled substances and conspiracy to launder money.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida and Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration (DEA) Miami Field Office made the announcement.
Gal Vallerius, aka “Oxymonster,” 36, pleaded guilty before U.S. District Court Judge Robert N. Scola Jr. in the Southern District of Florida. According to the court record, including the agreed upon factual proffer, beginning in or around November 2013 a criminal online marketplace known as Dream Market began operating on the Tor “dark web” network. Dream Market was designed to promote and facilitate the anonymous sale of illegal items. In time, the Dream Market website became one of the largest dark web criminal marketplaces. All of the items and services on Dream Market were offered for sale in exchange for Bitcoin and other peer-to-peer crypto-currencies.
According to the agreed upon factual proffer, Vallerius first participated in the conspiracy by becoming a vendor on Dream Market. As a vendor, he sold Oxycodone and Ritalin under the moniker “Oxymonster.” Shortly thereafter, Dream Market employed the defendant who acted at times as an administrator and senior moderator. In these positions, he played a role supporting the daily illicit transactions between buyers and vendors on Dream Market, such as the trafficking in narcotics, and the laundering of illicit proceeds using virtual currencies, Dream Market’s tumblers and the dark web. Vallerius is scheduled to be sentenced by Judge Scola on Sept. 25 at 8:30 a.m.
This investigation and prosecution was carried out by members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force. The South Florida HIDTA, established in 1990, is made up of federal, state and local law enforcement agencies that, cooperatively, target the region’s drug trafficking and money laundering organizations. The South Florida HIDTA is funded by the Office of National Drug Control Policy which sponsors a variety of initiatives focused on combatting the nation’s illicit drug trafficking threats.
The prosecution is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state, and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state, and local law enforcement.
The investigation was conducted by the DEA Miami Field Office and Paris Country Office, FBI Miami, IRS Criminal Investigation Miami Field Office, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Miami and Atlanta Field Offices, U.S. Customs and Border Protection’s Field Operations Atlanta, U.S. Postal Inspection Service Miami Field Office, the Department of Justice’s Office of International Affairs, Europol, Special Operations Division (SOD), Finnish National Police, Finnish International Judicial Administration of the Ministry of Justice, Dutch National Police, French Ministry of Justice and the Direction Interregionale de la Police Judiciaire as well as the U.S. Attorney’s Office for the Northern District of Georgia. The case is being prosecuted by Assistant U.S. Attorneys Juan A. Gonzalez and Frank R. Maderal of the Southern District of Florida and Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS).
With Assistance of U.S. Attorney’s Office in Southern District of Florida, U.S. Extradites Former President of Panama to Face Illegal Wiretapping and Embezzlement ChargesRead the Press Release
The United States today extradited Ricardo Alberto Martinelli Berrocal, who served as President of Panama from 2009 to 2014, to stand trial in that country on four charges related to an illegal wiretapping scheme allegedly conducted while he was in office.
Acting Assistant Attorney General John P. Cronan of the U.S. Department of Justice’s Criminal Division and U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida made the announcement.
“Following a year of litigation in the United States, former Panamanian President Ricardo Alberto Martinelli Berrocal has been extradited to Panama to face charges of embezzlement and illegal wiretapping,” said Acting Assistant Attorney General Cronan. “This extradition is a testament to the Department of Justice’s commitment to honoring our extradition treaty obligations. I especially thank the hard-working attorneys and international affairs specialists in the Office of International Affairs, as well as our partners in the U.S. Attorney’s Office for the Southern District Florida, for their tireless efforts in support of this extradition.”
“Assistant U.S. Attorneys for the Southern District of Florida, alongside attorneys for the Department’s Office of International Affairs, have worked hard to make sure that former Panamanian President Ricardo Alberto Martinelli Berrocal would be extradited back to his home country to face criminal charges,” said U.S. Attorney Greenberg. “Our Office is committed to upholding the rule of law and ensuring that justice is appropriately carried out for all parties. Because of Panama’s partnership with the United States, Martinelli has been returned to Panama.”
Ricardo Alberto Martinelli Berrocal, 66, formerly of Coral Gables, Florida, was indicted in Panama for illegally monitoring communications of more than 150 people between 2012 and 2014 using an extensive surveillance system, and for embezzling over $10 million in public funds. A justice of the Supreme Court of Justice of the Republic of Panama (the highest court in Panama) issued an arrest warrant for Martinelli on Dec. 21, 2015.
The Criminal Division’s Office of International Affairs, working with the government of Panama, the U.S. Attorney’s Office for the Southern District of Florida, and the U.S. Department of State successfully returned the former Panamanian President in response to a request submitted under the terms of the extradition treaty between the United States and Panama.
According to the information provided by the government of Panama in support of its extradition request, shortly after taking office, Martinelli created the National Security Council, an advisory body to the President containing a “Special Services” unit, which carried out confidential activities at the direction of the President. The Special Services unit used two multi-million-dollar surveillance systems to illegally intercept and record the private communications from the cell phones and computers of at least 150 individuals whom Martinelli identified as “targets,” including his political allies and opponents and their family members, his business rivals, Panamanian judges, journalists, union activists, U.S. diplomats, and others. Shortly following the 2014 elections, and before Martinelli left office as President, members of the National Security Council removed much of the surveillance equipment from the Special Services’ office. The whereabouts of the equipment is currently unknown.
On Aug. 31, 2017, a U.S. magistrate judge in the Southern District of Florida ruled that Martinelli could be extradited to Panama on the four Panamanian charges. Martinelli then filed a petition for a writ of habeas corpus, which the federal district court in the Southern District of Florida denied on Jan. 23, 2018.
Following a thorough review of Martinelli’s case, Deputy Secretary of State John J. Sullivan issued a warrant ordering Martinelli’s surrender to Panamanian authorities. Today, the U.S. Marshals Service executed that warrant, transported Martinelli to Panama, and delivered him to the custody of Panamanian authorities.
With the extradition now complete, the case will now move forward in the Panamanian legal system and any finding of guilt or innocence will be made by Panamanian courts.
The extradition proceedings and subsequent appellate litigation were handled by Acting Associate Director Christopher J. Smith and Trial Attorney Rebecca A. Haciski of the Criminal Division’s Office of International Affairs (OIA), and Assistant U.S. Attorneys Emily M. Smachetti and Adam S. Fels of the Southern District of Florida with the support of OIA Assistant Director Magdalena Boynton and the Criminal Division’s Appellate Section.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
US Extradites Former President of Panama to Face Illegal Wiretapping and Embezzlement ChargesRead the Press Release
The United States today extradited Ricardo Alberto Martinelli Berrocal, who served as President of Panama from 2009 to 2014, to stand trial in that country on four charges related to an illegal wiretapping scheme allegedly conducted while he was in office.
Acting Assistant Attorney General John P. Cronan of the U.S. Department of Justice’s Criminal Division and U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida made the announcement.
“Following a year of litigation in the United States, former Panamanian President Ricardo Alberto Martinelli Berrocal has been extradited to Panama to face charges of embezzlement and illegal wiretapping,” said Acting Assistant Attorney General Cronan. “This extradition is a testament to the Department of Justice’s commitment to honoring our extradition treaty obligations. I especially thank the hard-working attorneys and international affairs specialists in the Office of International Affairs, as well as our partners in the U.S. Attorney’s Office for the Southern District Florida, for their tireless efforts in support of this extradition.”
“Assistant U.S. Attorneys for the Southern District of Florida, alongside attorneys for the Department’s Office of International Affairs, have worked hard to make sure that former Panamanian President Ricardo Alberto Martinelli Berrocal would be extradited back to his home country to face criminal charges,” said U.S. Attorney Greenberg. “Our Office is committed to upholding the rule of law and ensuring that justice is appropriately carried out for all parties. Because of Panama’s partnership with the United States, Martinelli has been returned to Panama.”
Ricardo Alberto Martinelli Berrocal, 66, formerly of Coral Gables, Florida, was indicted in Panama for illegally monitoring communications of more than 150 people between 2012 and 2014 using an extensive surveillance system, and for embezzling over $10 million in public funds. A justice of the Supreme Court of Justice of the Republic of Panama (the highest court in Panama) issued an arrest warrant for Martinelli on Dec. 21, 2015.
The Criminal Division’s Office of International Affairs, working with the government of Panama, the U.S. Attorney’s Office for the Southern District of Florida, and the U.S. Department of State successfully returned the former Panamanian President in response to a request submitted under the terms of the extradition treaty between the United States and Panama.
According to the information provided by the government of Panama in support of its extradition request, shortly after taking office, Martinelli created the National Security Council, an advisory body to the President containing a “Special Services” unit, which carried out confidential activities at the direction of the President. The Special Services unit used two multi-million-dollar surveillance systems to illegally intercept and record the private communications from the cell phones and computers of at least 150 individuals whom Martinelli identified as “targets,” including his political allies and opponents and their family members, his business rivals, Panamanian judges, journalists, union activists, U.S. diplomats, and others. Shortly following the 2014 elections, and before Martinelli left office as President, members of the National Security Council removed much of the surveillance equipment from the Special Services’ office. The whereabouts of the equipment is currently unknown.
On Aug. 31, 2017, a U.S. magistrate judge in the Southern District of Florida ruled that Martinelli could be extradited to Panama on the four Panamanian charges. Martinelli then filed a petition for a writ of habeas corpus, which the federal district court in the Southern District of Florida denied on Jan. 23, 2018.
Following a thorough review of Martinelli’s case, Deputy Secretary of State John J. Sullivan issued a warrant ordering Martinelli’s surrender to Panamanian authorities. Today, the U.S. Marshals Service executed that warrant, transported Martinelli to Panama, and delivered him to the custody of Panamanian authorities.
With the extradition now complete, the case will now move forward in the Panamanian legal system and any finding of guilt or innocence will be made by Panamanian courts.
The extradition proceedings and subsequent appellate litigation were handled by Acting Associate Director Christopher J. Smith and Trial Attorney Rebecca A. Haciski of the Criminal Division’s Office of International Affairs, and Assistant U.S. Attorneys Emily M. Smachetti and Adam S. Fels of the Southern District of Florida with the support of OIA Assistant Director Magdalena Boynton and the Criminal Division’s Appellate Section.
Three Broward County Residents Sentenced to Prison for Heroin and Firearms TraffickingRead the Press Release
Three Broward County residents have been sentenced to prison for their involvement in a heroin and firearms trafficking enterprise.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
According to the court record, associates Scoth Vilbrun, 19, Mondlin Seppe, a/k/a “Box Chevy,” 27, and Jovante Telfort, 26, all of Pompano Beach, were involved in the trafficking of firearms and narcotics. On July 13, 2017, Vilbrun sold approximately 7 grams of heroin and a .45 rifle to an undercover officer. On August 10, 2017, Seppe, sold approximately 14 grams of heroin and 2 revolvers to an undercover officer. On June 23, 2017, Telfort, 26, sold approximately 15 grams of heroin and a Ruger, mini 30 rifle to an undercover officer.
The defendants previously pled guilty to possession with intent to distribute narcotics and possession of a firearm during and in relation to a drug trafficking offense and were recently sentenced to prison by United States District Court Judge William P. Dimitrouleas. On May 30, 2018, Telfort, was sentenced to a total of 84 months in prison (24 months in prison for the narcotics offense, to be followed by 60 months in prison for the firearm offense). On the same date, Seppe was sentenced to a total of 78 months in prison (18 months in prison for the narcotics offense, to be followed by 60 months in prison for the firearm offense). On June 6, 2018, Vilbrun was sentenced to a total of 72 months in prison (12 months in prison for the narcotics offense, to be followed by 60 months in prison for the firearm offense).
Each defendant was sentenced to 3 years of supervised release for the narcotics offense, to run concurrent to 5 years of supervised release for the firearm offense.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Mr. Greenberg commended the investigative efforts of the ATF and BSO in this matter. This case was prosecuted by Assistant U.S. Attorney Bruce Brown.
Court documents and information related to this case may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Biscayne Park Police Chief and Two Former Patrol Officers Indicted for Conspiring to Violate Juvenile’s Civil rights by Intentionally Making False ArrestsRead the Press Release
U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Acting Assistant Attorney General John Gore, Katherine Fernandez Rundle, Miami-Dade State Attorney, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), today announced federal charges against former Biscayne Park Police Chief Raimundo Atesiano and former Officers Charlie Dayoub and Raul Fernandez for their roles in conspiring to falsely arrest a 16-year-old juvenile, T.D., for four unsolved burglaries.
Atesiano, Dayoub and Fernandez were charged with conspiracy to violate civil rights under color of law, in violation of Title 18, United States Code, Section 241; and deprivation of T.D.’s civil rights, under color of law, in violation of Title 18, United States Code, Section 242. If convicted, Atesiano, Dayoub and Fernandez each face a maximum statutory sentence of 11 years in prison. An initial hearing for Atesiano was held today, in Miami, before U.S. Magistrate Judge John J. O’Sullivan.
The indictment alleges that Atesiano, as the Biscyane Park Police Chief, caused and encouraged officers to knowingly arrest T.D. without a legitimate basis in order to maintain a fictitious 100 percent clearance rate of reported burglaries. Atesiano directed Dayoub and Fernandez to arrest T.D. on June 13, 2013, and falsely charge him with unsolved burglaries knowing that there was no evidence and no lawful basis to support such charges. The indictment further alleges that following Atesiano’s instruction, Dayoub and Fernandez gathered information for four unsolved burglary cases, completed four arrest affidavits for the burglaries, and included a false narrative that an investigation revealed that T.D. had committed the four burglaries of unoccupied dwellings. Atesiano, Dayoub and Fernandez knew there was no evidence and no lawful basis to arrest and charge T.D. with those crimes. On July 9, 2013, at a meeting of the City Council for The Village of Biscayne Park, Atesiano announced that his department had a 100 percent clearance rate for burglaries.
An indictment merely contains allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.Mr. Greenberg commends the investigative efforts of the FBI, the FBI Miami Area Corruption Task Force and FDLE in this matter.
Mr. Greenberg thanked the Miami-Dade State Attorney’s Office for its assistance. The case is being prosecuted by Assistant U.S. Attorney Harry Wallace and Special Assistant United States Attorney Trent Reichling of the Southern District of Florida, and Trial Attorney D.W. Tunnage of the Civil Rights Division of the Department of Justice.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
74 Arrested in Coordinated International Enforcement Operation Targeting Hundreds of Individuals in Business Email Compromise SchemesRead the Press Release
Federal authorities announced today a significant coordinated effort to disrupt Business Email Compromise (BEC) schemes that are designed to intercept and hijack wire transfers from businesses and individuals, including many senior citizens. Operation Wire Wire, a coordinated law enforcement effort by the U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of the Treasury and the U.S. Postal Inspection Service, was conducted over a six month period, culminating in over two weeks of intensified law enforcement activity resulting in 74 arrests in the United States and overseas, including 29 in Nigeria, and three in Canada, Mauritius and Poland. The operation also resulted in the seizure of nearly $2.4 million, and the disruption and recovery of approximately $14 million in fraudulent wire transfers.
BEC, also known as “cyber-enabled financial fraud,” is a sophisticated scam often targeting employees with access to company finances and businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments. The same criminal organizations that perpetrate BEC also exploit individual victims, often real estate purchasers, the elderly, and others, by convincing them to make wire transfers to bank accounts controlled by the criminals. This is often accomplished by impersonating a key employee or business partner after obtaining access to that person’s email account or sometimes done through romance and lottery scams. BEC scams may involve fraudulent requests for checks rather than wire transfers; they may target sensitive information such as personally identifiable information (PII) or employee tax records instead of, or in addition to, money; and they may not involve an actual “compromise” of an email account or computer network. Foreign citizens perpetrate many BEC scams. Those individuals are often members of transnational criminal organizations, which originated in Nigeria but have spread throughout the world.
“Fraudsters can rob people of their life's savings in a matter of minutes,” said Attorney General Sessions. “These are malicious and morally repugnant crimes. The Department of Justice has taken aggressive action against fraudsters in recent months, conducting the largest sweep of fraud against American seniors in history back in February. Now, in this operation alone, we have arrested 42 people in the United States and 29 others have been arrested in Nigeria for alleged financial fraud. And so I want to thank the FBI, nearly a dozen U.S. Attorneys' Offices, the Secret Service, Postal Inspection Services, Homeland Security Investigations, the Treasury Department, our partners in Nigeria, Poland, Canada, Mauritius, Indonesia, and Malaysia, and our state and local law enforcement partners for all of their hard work. We will continue to go on offense against fraudsters so that the American people can have safety and peace of mind.”
“The deceptive and illicit practices that drive cyber fraud schemes have no place in our South Florida community,” stated U.S. Attorney Benjamin Greenberg for the Southern District of Florida. “Shell companies, money mules, email account takeovers and wire fraud disrupt legitimate businesses and have devastating financial consequences for the victims. A lifetime of savings can disappear with a keystroke. We remind everyone to be vigilant, to protect your personal identifying information and to be extremely cautious of cyber-scams.”
“This operation demonstrates the FBI’s commitment to disrupt and dismantle criminal enterprises that target American citizens and their businesses,” said FBI Director Christopher A. Wray. “We will continue to work together with our law enforcement partners around the world to end these fraud schemes and protect the hard-earned assets of our citizens. The public we serve deserves nothing less.”
“The Secret Service remains committed to aggressively investigating and pursuing those responsible for cyber-enabled financial crimes,” said U.S. Secret Service Director Randolph “Tex” Alles. “Although the explosive expansion of the cyber domain has forced us to develop innovative ways of conducting these types of investigations, our proven model remains the same.”
“FinCEN has been a leader in the fight against BEC and other cyber-enabled crime,” said FinCEN Director Kenneth A. Blanco. “Since 2014, working with our domestic and international partners, our Rapid Response Program has helped recover over $350 million stolen from innocent Americans. We must continue to be smarter, quicker, and better than the criminals that we face every day. Today’s action is a victory, but it will take vigilance, time, and resources to take this fight into the future. In defense of the victims of these crimes, we are ready for the challenge.”
“The U.S. Postal Inspection Service has a long history of successfully investigating complex fraud and corruption cases,” said Chief Postal Inspector Guy Cottrell, U.S. Postal Inspection Service. “We are proud to work alongside our fellow law enforcement partners in major efforts, such as Operation Wire Wire, to target those individuals who take advantage of the American public for illegal profits. Anyone who engages in deceptive practices like this should know they will not go undetected and will be held accountable, regardless of where they are. Postal Inspectors will continue to work tirelessly to protect our customers from fraud.”
A number of cases involved international criminal organizations that defrauded small to large sized businesses, while others involved individual victims who transferred high dollar funds or sensitive records in the course of business. The devastating effects these cases have on victims and victim companies, affect not only the individual business but also the global economy. Since the Internet Crime Complaint Center (IC3) began keeping track of BEC and its variant, Email Account Compromise (EAC), as a complaint category, there has been a loss of over $3.7 billion reported to the IC3. BEC and EAC is a prevalent scam and the Justice Department along with our partners will continue to aggressively pursue and prosecute the perpetrators, including money mules, regardless of where they are located.
Money mules may be witting or unwitting accomplices who receive ill-gotten funds from the victims and then transfer the funds as directed by the fraudsters. The money is wired or sent by check to the money mule who then deposits it in his or her own bank account. Usually the mules keep a fraction for “their trouble” and then wire the money as directed by the fraudster. The fraudsters enlist and manipulate the money mules through romance scams or “work-at-home” scams.
Starting in January 2018, this coordinated enforcement action targeted hundreds of BEC scammers. In addition, law enforcement agents executed over 51 domestic actions including search warrants, money mule warning letters, and asset seizure warrants totaling nearly $1 million. Local and state law enforcement partners on FBI task forces across the country, with the assistance of multiple District Attorney’s Offices, charged 15 alleged money mules for their role in defrauding victims. These money mules were employed by the fraudsters to launder their ill-gotten gains by draining the funds into other accounts that are difficult to trace.
Among those arrested on federal charges in BEC schemes include:
- Following an investigation by the FBI and the U.S. Secret Service, 23 individuals were charged in the Southern District of Florida with laundering at least $10 million from proceeds of BEC scams, including eight people charged in an indictment unsealed last week in Miami. These eight defendants are alleged to have conspired to launder proceeds from numerous BEC scams, totaling at least approximately $5 million, including approximately $1.4 million from a victim corporation in Seattle, as well as various title companies and a law firm. The following BEC related matters are currently being handled by the U.S. Attorney’s Office for the Southern District of Florida: Case Nos. 17-CR-20748, 18-CR-20170, and 18-CR-20415.
- Following an investigation led by the FBI with the assistance of the IRS Criminal Investigation, Gloria Okolie and Paul Aisosa, both Nigerian nationals residing in Dallas, Texas, were charged in an indictment filed on June 6 in the Southern District of Georgia. According to the indictment, they are alleged to have victimized a real estate closing attorney by sending the lawyer a spoofing email posing as the seller and requesting that proceeds of a real estate sale in the amount of $246,000 be wired to Okolie’s account. They are charged with laundering approximately $665,000 in illicit funds. The attorney experienced $130,000 in losses after the bank was notified of the fraud and froze $116,000.
- Adeyemi Odufuye aka “Micky,” “Micky Bricks,” “Yemi,” “GMB,” “Bawz” and “Jefe,” 32, and Stanley Hugochukwu Nwoke, aka Stanley Banks,” “Banks,” “Hugo Banks,” “Banky,” and “Jose Calderon,” 27, were charged in a seven-count indictment in the District of Connecticut in a BEC scheme involving an attempted loss to victims of approximately $2.6 million, including at least $440,000 in actual losses to one victim in Connecticut. A third co-conspirator Olumuyiwa Yahtrip Adejumo, aka “Ade,” “Slimwaco,” “Waco,” “Waco Jamon,” “Hade,” and “Hadey,” 32, of Toledo, Ohio, pleaded guilty on April 20 to one count of conspiracy to commit wire fraud. Odufuye was extradited from the United Kingdom to the United States and on Jan. 3, pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft. Nwoke was extradited to the United States from Mauritius on May 25, marking the first extradition in over 15 years from Mauritius. His case is pending.
- Richard Emem Jackson, aka Auwire, 23, of Lagos, Nigeria, was charged in an indictment filed on May 17 in the District of Massachusetts with two counts of unlawful possession of a means of identification as part of a larger fraud scheme. According to the indictment, on two occasions in 2017, Jackson is alleged to have possessed the identifications of two victims with the intent to commit wire fraud conspiracy. In another case being prosecuted in the District of Massachusetts, a 25-year-old Fort Lauderdale, Florida man was indicted in federal court in Boston on June 6 on one count of money laundering conspiracy. According to the indictment, the individual was part of a conspiracy that engaged in wire fraud. It is alleged that in early 2018, the defendant’s co-conspirators gained access to email accounts belonging to a Massachusetts real estate attorney and sent emails to recipients in Massachusetts that “spoofed” the real estate attorney’s account in an attempt to cause the email recipient to transfer nearly $500,000, which was intended to be used for payment in connection with a real estate transaction, to a shell account belonging to a money mule recruited and controlled by the defendant.
- The BEC scam is related to other forms of fraud such as:
- “Romance scams,” which lull victims to believe that their online paramour needs funds for an international business transaction, a U.S. visit or some other purpose;
- “Employment opportunities scams,” which recruits prospective employees for work-from-home employment opportunities where employees are required to provide their PII as new “hires” and then are significantly overpaid by check whereby the employees wire the overpayment to the employers’ bank;
- “Fraudulent online vehicle sales scams,” which convinces intended buyers to purchase prepaid gift cards in the amount of the agreed upon sale price and are instructed to share the prepaid card codes with the “sellers” who ignore future communications and do not deliver the goods;
- “Rental scams” occur when renters forward a check in excess of the agreed upon deposit for the rental property to the victims and request the remainder be returned via wire or check and back out of the rental agreements and ask for a refund; and
- “Lottery scams,” which involves persons randomly contacting email addresses advising them they have been selected as the winner of an international lottery.
The cases were investigated by the FBI, U.S. Secret Service, U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN) and IRS Criminal Investigation. U.S. Attorney’s Offices in the Districts of Central California, Connecticut, Eastern Virginia, Massachusetts, Nebraska, New Jersey, Southern Florida, Southern Georgia, Southern Texas, Eastern Pennsylvania, Eastern Washington, Western Pennsylvania, Western Tennessee, Western Washington, Utah, and elsewhere have ongoing investigations some of which have resulted in arrests in Nigeria. The Justice Department’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section and Office of International Affairs of the Criminal Division provided assistance. District Attorney’s Offices of Caddo Parrish in Shreveport, Louisiana; Harris County, Texas and Los Angeles are handling state prosecutions. Additionally, private sector partners and the Nigerian Economic and Financial Crimes Commission, Canadian law enforcement including the Toronto Police Service, the Mauritian Attorney-General and the Commissioner of Police, Polish Police Central Bureau of Investigation, Indonesian National Police Cyber Crimes Unit, and the Royal Malaysia Police provided significant assistance.
This operation, which was funded and coordinated by the FBI, serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Attorney General Sessions expressed gratitude for the outstanding efforts of the participating countries, including law enforcement actions that were coordinated and executed by the Economic and Financial Crimes Commission (EFCC) in Nigeria to curb business email compromise schemes that defraud businesses and individuals alike.
Victims are encouraged to file a complaint online with the IC3 at bec.ic3.gov. The IC3 staff reviews complaints, looking for patterns or other indicators of significant criminal activity, and refers investigative packages of complaints to the appropriate law enforcement authorities in a particular city or region. The FBI provides a variety of resources relating to BEC through the IC3, which can be reached at www.ic3.gov.
For more information on BEC scams, visit: www.ic3.gov/media/2018/180611.aspx
An indictment, criminal complaint, and information sets forth a formal charge against a defendant. Under the law, that charge is merely an accusation and a defendant is presumed innocent unless proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
- Following an investigation by the FBI and the U.S. Secret Service, 23 individuals were charged in the Southern District of Florida with laundering at least $10 million from proceeds of BEC scams, including eight people charged in an indictment unsealed last week in Miami. These eight defendants are alleged to have conspired to launder proceeds from numerous BEC scams, totaling at least approximately $5 million, including approximately $1.4 million from a victim corporation in Seattle, as well as various title companies and a law firm. The following BEC related matters are currently being handled by the U.S. Attorney’s Office for the Southern District of Florida: Case Nos. 17-CR-20748, 18-CR-20170, and 18-CR-20415.
Customs Broker Pleads Guilty to Mail Fraud in Scheme to Evade Federal Excise Tax on Imported CigarsRead the Press Release
Alberto Rodriquez, 66, of Briarwood, New York, pleaded guilty today to mail fraud in connection with a scheme to evade federal excise tax on imported cigars.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida and Ron Hancock, Acting Assistant Administrator for Field Operations, Alcohol and Tobacco Tax and Trade Bureau (TTB), made the announcement.
According to information contained in the court record, from as early as July 2013, Rodriguez operated as a customs broker in the State of New York. Rodriguez contracted with two tobacco importers to import large cigars into the United States. In an effort to defraud the United States of excise tax due on the imported cigars, Rodriguez created false and fraudulent documents, including United States Customs and Border Protection (CBP) Forms 7501 ("Entry Summaries"), which misrepresented, among other things, the quantities of large cigars imported into the United States and the Federal tobacco excise tax due for those importations. In addition to consistently underreporting and evading the Federal tobacco excise tax, Rodriguez transmitted false and fraudulent documents to CBP using the United States Postal Service mail.
To profit from the scheme, Rodriguez sent invoices to the two tobacco importers reflecting the true quantities of imported large cigars and the properly calculated Federal tobacco excise tax due, which resulted in the importers paying Rodriguez more than what he paid to CBP.
To conceal the scheme, Rodriguez altered documents, including importer invoices and bank records, and provided these altered documents to TTB agents and employees, all for the purpose of misleading TTB and pretending that he had correctly calculated and paid to CBP the Federal tobacco excise tax due on the large cigars imported by the two importers.
Rodriguez pled guilty to an information charging him with mail fraud, in violation of Title 18, United States Code, Section 1341. In total, Rodriguez evaded approximately $503,681.15 in Federal Tobacco Excise Tax.
Sentencing is currently scheduled before U.S. District Judge Cecilia M. Altonaga, on August 22, 2018 at 9:00 a.m. Rodriguez faces a maximum sentence of 20 years in prison.
Mr. Greenberg commended the investigative efforts of TTB in this matter. He also thanked Internal Revenue Service, Criminal Investigation and CBP for their assistance. This case is being prosecuted by Assistant United States Attorney Christopher B. Browne.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Broward County Resident Sentenced to Prison for Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
On June 7, 2018, Joey Little, of Broward County, was sentenced to 57 months in prison by U.S. District Court Judge James I. Cohn, after previously pleading guilty to being a felon unlawfully in possession of a firearm and ammunition.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida and Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, made the announcement.
According to the court docket, including the agreed upon factual proffer, between June 21, 2016, and January 11, 2018, Little posted several photos and videos on social media in which he was pictured in possession of a firearm. During one of the videos, Little discharged the firearm in a residential area. On January 11, 2018, Little was located sitting in a vehicle outside his home. In the passenger seat, law enforcement found a lunch bag containing a Taurus .9mm pistol fitted with an extended magazine. Little had previously been convicted of a felony and was prohibited from possessing a firearm or ammunition.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Mr. Greenberg commended the investigatory efforts of the ATF in this matter. This case was prosecuted by Assistant United States Attorneys Anita G. White.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
U.S. Customs and Border Protection Paralegal Faces Federal Child Pornography ChargesRead the Press Release
A paralegal employed by the Department of Homeland Security, Customs and Border Protection, has been arrested on federal child pornography charges.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigations (FBI), and Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), made the announcement.
Richard Russo, 54, of Boynton Beach, was charged by criminal complaint with receipt and possession of child pornography, in violation of Title 18, United State Code, Section 2252(a)(2) and (b)(4). If convicted, Russo faces a minimum sentence of five years in prison and a statutory maximum term of 20 years in prison. Russo is currently being detained, without bond, pending further proceedings. His preliminary hearing and arraignment are scheduled to take place on June 14, 2018 at 10:00 a.m. in U.S. District Court in West Palm Beach.
According to the court record, including allegations contained in the criminal complaint, beginning in late 2017, Russo, a Paralegal Specialist with Customs and Border Protection began communicating and receiving child pornography from another individual using a cross-platform messaging service.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
A criminal complaint is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty in a court of law.
Mr. Greenberg commended the investigatory efforts of the FBI and BSO in this matter. He also thanked the FBI Child Exploitation Task Force, Florida Department of Law Enforcement and Department of Homeland Security - Office of the Inspector General for their assistance. This case is being prosecuted by Assistant United States Attorney Corey Steinberg.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former South Florida Resident Sentenced to 17 Years in Prison for Distributing Child PornographyRead the Press Release
On June 1, 2018, Neil Timothy Aho, 45, of Menlo Park, California, was sentenced to 17 years in prison and a lifetime of supervised release for distributing child pornography.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI); Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO) and Rick Maglione, Chief, Fort Lauderdale Police Department, made the announcement.
United States District Judge Kenneth A. Marra sentenced Aho to 204 months in prison and a lifetime of supervised release. Aho must also register as a sex offender. Aho previously pled guilty to one count of distribution of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2).
According to court documents, between 2012 and 2014, while Aho was living in South Florida, he amassed a large collection of child pornography which he attempted to hide from law enforcement detection using highly sophisticated software encryption techniques. In June of 2015, after Aho had relocated to California, law enforcement was able to establish a connection to the defendant's computer and thereafter downloaded child pornography files from him. Each of the files, that was downloaded from Aho’s computer, contained videos of minor children engaging in sexually explicit conduct with adult males. In 2015, the defendant was arrested in relation to this investigation. The investigation revealed that Aho possessed over 3,000 videos and 6,000 images depicting child pornography, including children under the age of 6 engaged in sexually explicit conduct with adults.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Greenberg commended the investigatory efforts of the ICE-HSI, BSO and Fort Lauderdale Police Department in this matter. This case was prosecuted by Assistant United States Attorneys Corey Steinberg and Gregory Schiller.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Man Sentenced to 26 Months in Prison for Conspiring to Illegally Export Defense Articles to RussiaRead the Press Release
Vladimir Nevidomy, 32, of Hallandale Beach, Florida, was sentenced to 26 months in prison, to be followed by three years of supervised release, for conspiring to illegally export military-grade night vision and thermal vision devices, and ammunition primers to Russia.
U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Assistant Attorney General for National Security John C. Demers, Special Agent in Charge Robert Lasky of the FBI’s Miami Field Office, and Special Agent in Charge Mark Selby of Homeland Security Investigation’s (HSI) Miami Field Office made the announcement after sentencing by U.S. District Judge Kathleen Williams.
According to information contained in court documents, from as early as April 2013 through November 2013, customers in Russia contacted Nevidomy by email requesting night vision rifle scopes, thermal monoculars and ammunition primers, all of which were on the U.S. Munitions List and subject to export control by the U.S. Department of State. Nevidomy proceeded to obtain at least three ATN MARS 4x4 night-vision rifle scopes and an ODIN 61BW thermal multi-purpose monocular from U.S. vendors by falsely representing to the vendors that the items were not for export.
After the U.S. vendors sent the night vision devices to Nevidomy in South Florida, he exported them to his co-defendant in Russia by either concealing the defense articles in household goods shipments sent through a freight forwarding company or using a private Russian postal service that operated in South Florida. In June 2013, Nevidomy aided and abetted the export of the ATN MARS 4x4 night-vision rifle scopes from the U.S. to the co-defendant in Russia, and in August 2013, he exported the ODIN 61BW thermal multi-purpose monocular from the U.S. to the co-defendant in Russia.
On or about July 19, 2013, the same co-defendant sent an email to Nevidomy requesting 1,000 large-rifle ammunition primers to be shipped to Vladivostok, Russia. On or about Oct. 2, 2013, Nevidomy attempted to export 1,000 Sellier & Bellot ammunition primers from the U.S. to the co-defendant in Vladivostok. These ammunition primers were seized by U.S. Customs and Border Protection.
These night vision rifle scopes, thermal monocular and ammunition primers required a license or other authorization from the U.S. Department of State before being exported from the U.S. since they were on the U.S. Munitions List. A certified license history check revealed that neither Nevidomy, a Ukraine-born naturalized U.S. citizen, nor his associates ever applied or attempted to apply for an export license from the State Department for the night-vision equipment or ammunition primers.
Nevidomy was sentenced today to concurrent time, in Case No. 17-CR-60137, after previously pleading guilty to passport fraud and conspiracy to commit passport fraud in the Southern District of Florida.
Mr. Greenberg and Mr. Demers commended the investigative efforts of the FBI and HSI. This case was prosecuted by Assistant U.S. Attorneys Michael Thakur and Rick Del Toro of the Southern District of Florida, and Trial Attorney Christian Ford of the National Security Division’s Counterintelligence and Export Control Section.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Man Sentenced to 26 Months in Prison for Conspiring to Illegally Export Defense Articles to RussiaRead the Press Release
Vladimir Nevidomy, 32, of Hallandale Beach, Florida, was sentenced to 26 months in prison, to be followed by three years of supervised release, for conspiring to illegally export military-grade night vision and thermal vision devices, and ammunition primers to Russia.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Special Agent in Charge Robert Lasky of the FBI’s Miami Field Office, and Special Agent in Charge Mark Selby of Homeland Security Investigation’s (HSI) Miami Field Office made the announcement after sentencing by U.S. District Judge Kathleen Williams.
According to information contained in court documents, from as early as April 2013 through November 2013, customers in Russia contacted Nevidomy by email requesting night vision rifle scopes, thermal monoculars and ammunition primers, all of which were on the U.S. Munitions List and subject to export control by the U.S. Department of State. Nevidomy proceeded to obtain at least three ATN MARS 4x4 night-vision rifle scopes and an ODIN 61BW thermal multi-purpose monocular from U.S. vendors by falsely representing to the vendors that the items were not for export.
After the U.S. vendors sent the night vision devices to Nevidomy in South Florida, he exported them to his co-defendant in Russia by either concealing the defense articles in household goods shipments sent through a freight forwarding company or using a private Russian postal service that operated in South Florida. In June 2013, Nevidomy aided and abetted the export of the ATN MARS 4x4 night-vision rifle scopes from the U.S. to the co-defendant in Russia, and in August 2013, he exported the ODIN 61BW thermal multi-purpose monocular from the U.S. to the co-defendant in Russia.
On or about July 19, 2013, the same co-defendant sent an email to Nevidomy requesting 1,000 large-rifle ammunition primers to be shipped to Vladivostok, Russia. On or about Oct. 2, 2013, Nevidomy attempted to export 1,000 Sellier & Bellot ammunition primers from the U.S. to the co-defendant in Vladivostok. These ammunition primers were seized by U.S. Customs and Border Protection.
These night vision rifle scopes, thermal monocular and ammunition primers required a license or other authorization from the U.S. Department of State before being exported from the U.S. since they were on the U.S. Munitions List. A certified license history check revealed that neither Nevidomy, a Ukraine-born naturalized U.S. citizen, nor his associates ever applied or attempted to apply for an export license from the State Department for the night-vision equipment or ammunition primers.
Mr. Demers and Mr. Greenberg commended the investigative efforts of the FBI and HSI. This case was prosecuted by Assistant U.S. Attorneys Michael Thakur and Rick Del Toro of the Southern District of Florida, and Trial Attorney Christian Ford of the National Security Division’s Counterintelligence and Export Control Section.
Seven Individuals Sentenced to Prison in Multi-Million Dollar International Money Laundering ConspiracyRead the Press Release
On May 30, 2018, Geannis Gonzalez, 31, formerly of Peyton, Colorado, Quiana Velasco, 35, of Miami, Jose Daniel Estrella, 38, of Hallandale, Pedro Reyes, 38, of Hialeah, Robinson Castillo, 32, of Pembroke Pines, and Jamie Vives Castillo, 41, of Pembroke Pines, were sentenced to federal prison for participating in a conspiracy to commit money laundering. Yesterday, conspirator Alfredo Tovar, 36, of Miami Gardens, was also sentenced to prison for his involvement in the criminal scheme. All seven defendants previously pled guilty for their involvement in the conspiracy, in March 2018.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
“The sentences announced today stem from a pernicious scheme that was breathtaking in scope,” stated United States Attorney Benjamin Greenberg. “Unfortunately, the life-blood of this devastating scheme was a steady stream of people who cast aside their respect for the law, in the pursuit of ‘easy money.’ As a result, vulnerable men and women throughout the country were stripped of their life savings. The U.S. Attorney’s Office and our law enforcement partners will continue to bring to justice those individuals who carry out, and recruit for, similar criminal enterprises.”
“Today’s sentencings punish the defendants for their thievery and greed,” said Robert F. Lasky, Special Agent in Charge, FBI Miami. “So-called white collar crimes such as money laundering should not be taken lightly. In this case, there were over 400 victims, including retirees, who were scammed out of tens or hundreds of thousands of their hard-earned dollars. The FBI is continuously adapting our investigative techniques to bring these types of offenders to justice.”
According to stipulated facts filed in court, as well as facts presented at sentencing, the defendants opened bank accounts established in the names of shell corporations to receive the proceeds of various fraudulent schemes, including romance frauds, email hacking schemes, and inheritance and lottery scams, that victimized individuals and corporations across the United States. Once these bank accounts received money wired from a fraud victim, the defendants would wire the money to other accounts overseas. Victims of the fraud schemes included retirees and other individuals whom were defrauded of tens or hundreds of thousands of dollars, including retirement savings and money borrowed from friends and family members.
After banks closed the accounts that the defendants had opened, often on suspicion that the they were being used for fraud or other illegal activity, the defendants would recruit other individuals to act as “money mules,” establishing additional shell corporations in the money mules’ names. The defendants would then instruct the money mules to open new bank accounts throughout South Florida in the names of the new shell corporations. They would also instruct the mules to falsely represent to the banks that the shell corporations were legitimate businesses engaged in the import, export, or sale of various goods. Those accounts would similarly receive proceeds from the same sorts of fraudulent schemes, after which the defendants would instruct their recruits to further wire the money overseas. The defendants received repeated warnings and indications that the funds coming into the shell corporation bank accounts were the proceeds from illegal activity. The bank accounts that were utilized by the defendants and the mules they recruited, received between $3,381,110 to $7,177,442 in proceeds. As a result of their involvement with this scheme, the seven defendants would receive a small percentage of these funds as their commission. Overall, the conspiracy included the participation of dozens of individuals and laundered money was defrauded from more than 400 victims.
United States District Court Judge Ursula Ungaro imposed prison sentences upon all seven defendants, ranging from 108 months in prison for Pedro Reyes and 80 months in prison for Geannis Gonzalez, to 48 months in prison for Jose Estrella, Jamie Vives Castillo, and Robinson Castillo. Quiana Vealsco and Alfredo Tovar were each sentenced to 60 months in prison.
Mr. Greenberg commended the investigative efforts of the FBI in connection with this matter. This case was prosecuted by Assistant U.S. Attorneys Jared M. Strauss and Michael G. Walleisa.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Honduran Man Who Planned to Detonate Explosive at Miami Mall Sentenced to 210 Months for Attempting to Provide Material Support to ISISRead the Press Release
Vicente Adolfo Solano, 53, a citizen of Honduras residing in Miami, was sentenced to 210 months in prison, to be followed by a lifetime of supervised release, for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, after planning to detonate an explosive device at a Miami mall. Solano pleaded guilty on March 14, 2018.
U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Assistant Attorney General for National Security John C. Demers, and Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office made the announcement after sentencing by U.S. District Judge Paul C. Huck.
“Any individual who plots to support a foreign terrorist organization puts our local community at risk and this threat remains a top priority for our U.S. Attorney’s Office and our law enforcement partners,” stated U.S. Attorney Greenberg. “Today’s sentence speaks to those who harbor extremist ideals – your terroristic agenda will be thwarted and your punishment of years in prison will be your only lasting legacy.”
“The efforts of the dedicated women and men of the FBI and the South Florida Joint Terrorism Task Force have kept the people of Miami safe from this ISIS supporter and ensured Solano will go to prison,” said Assistant Attorney General Demers. “I am grateful for our law enforcement partners, and I applaud our prosecutors for today’s successful outcome and the message it sends: we will not tolerate threats to our country or its people.”
"Solano dreamed of detonating an explosive device in a crowded Miami area mall, but he was denied his terroristic aspirations by the outstanding work and team effort of the South Florida Joint Terrorism Task Force,” said Special Agent in Charge Lasky. “This is a job well done by a group of professionals who must remain eternally vigilant.”
According to the stipulated factual basis filed with the Court, in early 2017, Solano told an individual, who later became a Confidential Human Source (CHS) for the government, that he was upset with the United States and wanted to conduct an attack in Miami. Later, Solano told this CHS that he wanted to join ISIS.
Solano planned to place and detonate an explosive device in a crowded area of a popular Miami mall. Solano discussed his plot with the CHS and two undercover FBI employees. According to the complaint, Solano provided three videos to the CHS, in which Solano makes pro-ISIS statements and expresses anti-U.S. sentiments. Just prior to his arrest, Solano took possession of what he believed was an explosive device, took steps to arm it, and walked toward a mall entrance in order to carry out his attack. Unbeknownst to Solano, the device was inert and did not pose a risk to the public. Solano was taken into custody prior to entering the Mall.
Judge Huck imposed a sentence below the statutory maximum recommended by the advisory sentencing guidelines and advocated by the government, noting that the defendant is currently in removal proceedings and will be returned to his native country of Honduras following his prison term. Solano had been residing in the United States under Temporary Protected Status. His protected status has since been revoked.
Mr. Greenberg commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force. This case was prosecuted by Assistant U.S. Attorney Karen E. Gilbert for the Southern District of Florida and Trial Attorney Jolie Zimmerman of the National Security Division’s Counterterrorism Section.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Honduran Man Who Planned to Detonate Explosive at Miami Mall Sentenced to 210 Months for Attempting to Provide Material Support to ISISRead the Press Release
Vicente Adolfo Solano, 53, a citizen of Honduras residing in Miami, was sentenced to 210 months in prison, to be followed by a lifetime of supervised release, for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, after planning to detonate an explosive device at a Miami mall. Solano pleaded guilty on March 14.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, and Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office made the announcement after sentencing by U.S. District Judge Paul C. Huck.
“The efforts of the dedicated women and men of the FBI and the South Florida Joint Terrorism Task Force have kept the people of Miami safe from this ISIS supporter and ensured Solano will go to prison,” said Assistant Attorney General Demers. “I am grateful for our law enforcement partners, and I applaud our prosecutors for today’s successful outcome and the message it sends: we will not tolerate threats to our country or its people.”
“Any individual who plots to support a foreign terrorist organization puts our local community at risk and this threat remains a top priority for our U.S. Attorney’s Office and our law enforcement partners,” stated U.S. Attorney Greenberg. “Today’s sentence speaks to those who harbor extremist ideals – your terroristic agenda will be thwarted and your punishment of years in prison will be your only lasting legacy.”
“Solano dreamed of detonating an explosive device in a crowded Miami area mall, but he was denied his terroristic aspirations by the outstanding work and team effort of the South Florida Joint Terrorism Task Force,” said Special Agent in Charge Lasky. “This is a job well done by a group of professionals who must remain eternally vigilant.”
According to the stipulated factual basis filed with the Court, in early 2017, Solano told an individual, who later became a Confidential Human Source (CHS) for the government, that he was upset with the United States and wanted to conduct an attack in Miami. Later, Solano told this CHS that he wanted to join ISIS.
Solano planned to place and detonate an explosive device in a crowded area of a popular Miami mall. Solano discussed his plot with the CHS and two undercover FBI employees. According to the complaint, Solano provided three videos to the CHS, in which Solano makes pro-ISIS statements and expresses anti-U.S. sentiments. Just prior to his arrest, Solano took possession of what he believed was an explosive device, took steps to arm it, and walked toward a mall entrance in order to carry out his attack. Unbeknownst to Solano, the device was inert and did not pose a risk to the public. Solano was taken into custody prior to entering the Mall.
Judge Huck imposed a sentence below the statutory maximum recommended by the advisory sentencing guidelines and advocated by the government, noting that the defendant is currently in removal proceedings and will be returned to his native country of Honduras following his prison term. Solano had been residing in the United States under Temporary Protected Status. His protected status has since been revoked.
Mr. Demers and Mr. Greenberg commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force. This case was prosecuted by Assistant U.S. Attorney Karen E. Gilbert for the Southern District of Florida and Trial Attorney Jolie Zimmerman of the National Security Division’s Counterterrorism Section.
Hallandale Resident Convicted at Trial of Enticing a Minor While a Convicted Sex OffenderRead the Press Release
Peter Robert Bobal, 42, of Hallandale Beach, was convicted yesterday by a federal jury in Miami for enticing a 14-year-old to engage in sexual activity and committing a felony involving a minor while being required to register as a sex offender.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigations (FBI), made the announcement.
According to the court record, including evidence presented at trial, after receiving information from a concerned citizen, the FBI opened an investigation into Bobal. An undercover FBI agent posed as a 14 year-old girl and communicated with Bobal online. Over a period of twelve days in March of 2018, Bobal asked the individual he believed to be the 14 year-old minor more than 56 times to provide sexually explicit photographs and more than 70 times to meet him in person in order to engage in sexual activity. Bobal arranged to meet the 14-year old minor to commit a sexual act on March 14, 2018. On that date, Bobal was arrested when he arrived at the pre-arranged location to meet with the minor.
The jury found that Bobal committed a felony involving a minor while being required to register as a sex offender, following a 2005 conviction for enticement of a minor.
Bobal is to be sentenced on August 14, 2018 by U.S. District Court Judge Beth Bloom. He faces a mandatory minimum sentence of 20 years in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Greenberg commended the investigatory efforts of the FBI and FBI Miami Child Exploitation Task Force in this matter. This case is being prosecuted by Special Assistant U.S. Attorney M. Catherine Koontz and Assistant United States Attorney Francis Viamontes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Coral Springs Resident Sentenced to 33 Months in Prison for Tax Preparation SchemeRead the Press Release
Chantale Baptiste, 33, of Coral Springs, Florida, was sentenced today to 33 months for conspiring with her husband and co-defendant, Weguel Legentus, to defraud the Internal Revenue Service (IRS) with respect to claims, and filing false claims with the IRS.
Benjamin G. Greenberg, U.S. Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Dana Watson, Chief, Margate Police Department, Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), and Drew J. Breakspear, Commissioner, Florida Department of Financial Regulations, made the announcement.
At sentencing, United States District Judge Darrin P. Gayles sentenced Baptiste to 33 months in prison. Baptiste agreed to pay restitution in the amount of $275,000. Baptiste will serve a three-year term of supervised release at the conclusion of her prison sentence.
According to publicly filed court documents, Baptiste and her husband, co-defendant Weguel Legentus, operated CMB Financial Group, Inc. (“CMB”), a tax preparation business, located primarily in Broward County. As tax preparers, Legentus and Baptiste would meet with their clients and prepare their clients’ tax returns. From at least as early as 2013 through 2016, Legentus and Baptiste prepared and filed false and fraudulent federal income tax returns on behalf of their clients. They did so by attaching to their clients’ tax returns false and fraudulent tax credit forms, and false and fraudulent IRS Schedule C forms reflecting profits or losses associated with businesses that their clients did not operate. These false and fraudulent credits and Schedule C profits or losses had the effect of increasing the refund owed by the IRS to the client. Legentus and Baptiste would then provide their clients with a copy of their prepared federal income tax return and represent that the information contained in the copy provided would be filed with the IRS on his clients’ behalf.
Baptiste and Legentus would then alter their clients’ tax returns without their clients’ knowledge and inflate the refund amount requested even further. Baptiste and Legentus would then file the false and fraudulent federal income tax returns with the inflated refund amount with the IRS. The IRS would then disburse the tax refunds to bank accounts controlled by Baptiste and Legentus, who would retain for their own use and benefit the amount of the inflated tax refund, as well as their fees. On occasion, Legentus and Baptiste would retain the entire tax refund amount for themselves. For example, one of their client’s refunds for approximately $12,000 was stolen in its entirety and deposited into an account controlled by Baptiste and Legentus. When clients would complain to Legentus and Baptiste, they would often be ignored, or lied to, about the status of their tax refund.
Baptiste had previously pled guilty to conspiracy to defraud the IRS with respect to claims, in violation of Title 18, United States Code, Section 286, and filing false claims with the IRS, in violation of Title 18, United States Code, Section 287. Legentus also pled guilty to conspiracy to defraud the IRS with respect to claims, in violation of Title 18, United States Code, Section 286, and filing false claims with the IRS, in violation of Title 18, United States Code, Section 287, and was previously sentenced to 33 months in prison.
Mr. Greenberg commended the investigative efforts of IRS-CI, the Margate Police Department, the Broward Sheriff’s Office, and the Florida Department of Financial Regulations. Mr. Greenberg also thanked the Ft. Lauderdale Police Department, the Coral Springs Police Department, and the Greenacres Police Department. The case was prosecuted by Assistant U.S. Attorneys J. Mackenzie Duane and Michael Berger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.